Teradata Corp Earnings: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component Teradata Corporation (NYSE:TDC) reported net income above Wall Street’s expectations for the first quarter. Teradata provides enterprise data warehousing, including enterprise analytic technologies and services.

Investing Insights: What’s the Future of Microsoft’s Stock?

Teradata Earnings Cheat Sheet for the First Quarter

Results: Net income for Teradata Corporation rose to $91 million (53 cents per share) vs. $65 million (38 cents per share) in the same quarter a year earlier. This marks a rise of 40% from the year-earlier quarter.

Revenue: Rose 21.1% to $613 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradata Corporation reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 52 cents per share. It beat the average revenue estimate of $586.8 million.

Quoting Management: “Teradata delivered our highest organic, constant-currency revenue growth quarter ever in the first quarter, fueled by record product revenue growth of 31 percent,” said Mike Koehler, president and chief executive officer of Teradata. “We have the widest and deepest portfolio in the market to address the analytic data needs of any organization. Teradata is well positioned in three large and growing markets-data warehousing, big data analytics and integrated marketing management.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 23.6% from the year earlier quarter.

The company’s net income has now been increasing for four consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 15.3% while the figure climbed 16% in the third quarter of the last fiscal year and 39.2% in the second quarter of the last fiscal year from the year earlier.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 4 cents in the fourth quarter of the last fiscal year, by 3 cents in the third quarter of the last fiscal year, and by 5 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 59 cents a share to 60 cents over the last ninety days. The average estimate for the fiscal year is $2.47 per share, a rise from $2.44 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Why Are These Health Stocks Feeling Under the Weather?

What Do Americans Think About Gold?>>

Here’s How to Bet on a Baby Boom>>