Teradata Reports Quarterly Earnings, Falls Short of Expectations

Teradata (NYSE:TDC) announced its quarterly earnings on Tuesday, and the results have raised some concerns among investors. For the quarter, the technology firm reported an earnings per share (EPS) of $0.30. This figure did not meet analysts' expectations, as they had anticipated a higher EPS of $0.44, resulting in a shortfall of $0.14.

The financial performance of Teradata showed a return on equity of 145.40% and a net margin of 4.56%. In light of the recent results, Teradata has updated its guidance for the fiscal year 2025, projecting an EPS between $2.150 and $2.250. For the first quarter of 2025, the company estimates an EPS within the range of $0.550 to $0.590.

Teradata Stock Performance

The trading day following the earnings release saw Teradata's stock decline by $0.07, bringing the share price down to $30.86. Over the course of the day, 1,150,124 shares changed hands, surpassing the average trading volume of 800,368 shares. Teradata holds a debt-to-equity ratio of 4.01, with a quick ratio of 0.79 and a current ratio of 0.80. Over the past year, the stock has seen a low of $24.02 and a high of $49.44. Currently, Teradata has a market capitalization of $2.95 billion, a price-to-earnings (P/E) ratio of 36.74, a PEG ratio of 3.19, and a beta of 0.78. The company's 50-day moving average stands at $31.69, while the 200-day moving average is $30.36.

Changes in Analyst Ratings

Following the earnings announcement, several equity analysts provided updates on their ratings for Teradata shares. Evercore ISI increased their price target from $34.00 to $37.00 and assigned an "outperform" rating on October 15th. Conversely, Barclays raised their price target from $29.00 to $30.00 but gave a rating of "underweight". Meanwhile, Royal Bank of Canada maintained a "sector perform" rating with a price target of $32.00 for Teradata shares. UBS Group raised their price target from $24.00 to $26.00 while issuing a "sell" rating. Additionally, Northland Securities slightly reduced their price target from $38.00 to $37.00, keeping an "outperform" rating for the stock. Overall, there are conflicting opinions, with three analysts rating the stock as a sell, four as a hold, four as a buy, and one as a strong buy. Presently, the consensus rating for Teradata is "Hold" with an average target price of $40.00.

Understanding Teradata's Business Model

Teradata Corporation, along with its subsidiaries, offers a comprehensive multi-cloud data platform designed for enterprise analytics. Their primary product, Teradata Vantage, is an open platform that facilitates data integration across an organization. Their business consulting services aid companies in formulating a data and analytical vision, establishing a multi-cloud ecosystem architecture, and discovering as well as capitalizing on analytical opportunities. This is complemented by strategies to ensure that the analytical infrastructure is effective and provides value.

Earnings, Analysis, Stocks