Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Teradata Corporation (NYSE: TDC ) plunged 10% Thursday after the company released solid first-quarter results, but followed with weaker-than-expected guidance.
So what: Quarterly revenue came in at $628 million, which translated to earnings of $0.54 per share. Analysts, on average, had expected earnings of just $0.47 per share on sales of $614.6 million.
Teradata also expects full-year 2014 sales "at the lower end" of its previous $2.77 billion to $2.88 billion range, which should result in earnings per share of $2.85 to $3.00. Wall Street went into the report hoping for slightly higher 2014 earnings of $2.93 per share on sales of $2.83 billion.
Now what: The guidance miss wasn't that significant, so today's drop may well be an overreaction, and shares look admittedly cheap trading around 12 times next year's expected earnings. In the end, I think shares of Teradata look attractive right now from a long-term perspective.
Warren Buffett just bought nearly 9 million shares of this company
But that doesn't mean Teradata is the only promising bet for patient investors. Imagine a company, for example, that rents a very specific and valuable piece of machinery for $41,000... per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has more than 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!
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