Teradata Earnings: Here’s Why the Stock is Falling Now

Teradata Corporation (NYSE:TDC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.54%.

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Teradata Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 28.33% to $0.43 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Decreased 4.24% to $587 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradata Corporation reported adjusted EPS income of $0.43 per share. By that measure, the company missed the mean analyst estimate of $0.53. It missed the average revenue estimate of $612.09 million.

Quoting Management: “As we expected, Teradata got off to a slow start in the first quarter of 2013. Although we continue to see softness in large capital purchases, we continue to have strong market momentum with our Aster Big Data Analytics and Integrated Marketing solutions as well as our Unified Data Architecture which helps organizations drive value from all of their data,” said Mike Koehler, president and chief executive officer, Teradata Corporation. “In 2013, we will continue to increase our investments in research and development and market coverage in order to further advance our leadership positions and grow our revenues in Data Warehousing, Big Data Analytics, and Integrated Marketing Management in the years to come.”

Key Stats (on next page)…

Revenue decreased 20.68% from $740 million in the previous quarter. EPS decreased 45.57% from $0.79 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.80 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $3.15 to a profit of $3.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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