Teradata Corp Earnings: Revenue Grows Again by Double-Digits

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

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Teradata Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the diversified computer systems company rose to $98 million (57 cents per share) vs. $85 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 15.3% from the year earlier quarter.

Revenue: Rose 22.8% to $673 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Teradata Corporation reported adjusted net income of 66 cents per share. By that measure, the company beat the mean estimate of 59 cents per share. It beat the average revenue estimate of $639.3 million.

Quoting Management: “Teradata finished the year strong, resulting in our best quarter and best year ever. Both the fourth quarter and full-year 2011 were records for the company on a number of metrics including revenue growth rate, non-GAAP product gross margin and operating margin rates which resulted in 25 percent growth in non-GAAP earnings per share for both the quarter and the year. We also added the highest number of new customers for both a quarter and a year,” said Mike Koehler, president and chief executive officer, Teradata Corporation.

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 19.6%, with the biggest boost coming in the second quarter when revenue rose 23.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 16% and in the second quarter, the figure rose 39.2%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the third quarter and by 5 cents in the second quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 50 cents per share, a drop from 51 cents. The average estimate for the fiscal year is $2.15 per share, a rise from $2.14 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com