The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Teradata missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins increased across the board.
Teradata notched revenue of $647.0 million. The 18 analysts polled by S&P Capital IQ anticipated sales of $667.4 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $602.0 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 $0.69. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.67 per share. GAAP EPS of $0.60 for Q3 were 18% higher than the prior-year quarter's $0.51 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 55.8%, 130 basis points better than the prior-year quarter. Operating margin was 22.1%, 120 basis points better than the prior-year quarter. Net margin was 16.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $750.2 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.69 billion. The average EPS estimate is $2.80.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 614 members out of 643 rating the stock outperform, and 29 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Teradata a green thumbs-up, and seven 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 $82.94.
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