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.
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