The 10-second takeaway
For the quarter ended March 31 (Q1), Teradata beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Teradata reported revenue of $613.0 million. The 15 analysts polled by S&P Capital IQ foresaw sales of $588.1 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $506.0 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 $0.60. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS of $0.53 for Q1 were 39% higher than the prior-year quarter's $0.38 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 55.1%, 80 basis points better than the prior-year quarter. Operating margin was 20.6%, 200 basis points better than the prior-year quarter. Net margin was 14.8%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $659.9 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $2.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 550 members out of 576 rating the stock outperform, and 27 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 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 $67.00.
Is Teradata playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Teradata to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Teradata. 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. The Motley Fool has a disclosure policy.