The 10-second takeaway
For the quarter ended June 30 (Q2), Teradata met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins improved, operating margins grew, net margins contracted.
Teradata logged revenue of $665.0 million. The 15 analysts polled by S&P Capital IQ hoped for revenue of $658.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $581.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS of $0.65 for Q2 were 8.3% higher than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 300 basis points better than the prior-year quarter. Operating margin was 24.1%, 480 basis points better than the prior-year quarter. Net margin was 16.8%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $678.7 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $2.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 584 members out of 614 rating the stock outperform, and 30 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give Teradata a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teradata is outperform, with an average price target of $80.29.
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