So you think data warehousing is a stagnant, mature business? Teradata
The data-mining and warehousing expert beat analyst expectations once again last week, giving the stock another 5% single-day boost. That's a consistent pattern for Teradata, which still hasn't missed an analyst target since early 2008. Thanks to all these little jumps, the stock has now tripled since it was recommended to Stock Advisor subscribers in spring 2009.
In the just-reported fourth quarter, Teradata saw non-GAAP earnings increase by 6% year-over-year on 10% higher revenue. So far, so unimpressive. But cash flow from operations took a flying 63% leap over the same period, and the all-important free cash flows nearly doubled.
And 2011 looks to improve on most of these metrics. Management expects about 13% higher sales this year, while earnings should grow somewhat faster than that. Teradata is a market leader in a space that includes IBM
Moreover, the need for intelligent data handling is only increasing as companies everywhere amass ever-growing quantities of raw business data. There will be a hockey-stick moment in Teradata's history sometime in the next couple of years when the need for these services hits home across enterprise-scale businesses worldwide. In this light, Teradata is akin to business-intelligence expert TIBCO Software
Data-handling software is changing the face of business, and it's not too late to buy into one of the few companies that provide all the right tools. Read more in a free report that we like to call "The Only Stock You Need To Profit From the NEW Technology Revolution," and you'll see what I mean.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Teradata is a Motley Fool Stock Advisor pick. The Fool owns shares of International Business Machines and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.