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

Teradata Corporation (NYSE:TDC) delivered a profit and beat Wall Street’s expectations, BUT 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 up 10.86%.

Teradata Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.3% to $0.76 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Rose 0.75% to $670 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradata Corporation reported adjusted EPS income of $0.76 per share. By that measure, the company beat the mean analyst estimate of $0.71. It missed the average revenue estimate of $670.7 million.

Quoting Management: “We were encouraged with our progress in the second quarter. We had good revenue growth in the U.S., record non-GAAP services gross margin rate, and a non-GAAP operating margin rate which was the second highest quarter ever,” said Mike Koehler, president and chief executive officer, Teradata Corporation.

Key Stats (on next page)…

Revenue increased 14.14% from $587 million in the previous quarter. EPS increased 76.74% from $0.43 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 $0.85 to a profit $0.84. For the current year, the average estimate has moved down from a profit of $3.03 to a profit of $3.00 over the last ninety days.

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