The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Teradata beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins contracted, net margins grew.
Teradata notched revenue of $740.0 million. The 21 analysts polled by S&P Capital IQ anticipated sales of $724.6 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $673.0 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 $0.79. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.66 for Q4 were 16% higher than the prior-year quarter's $0.57 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 55.4%, 20 basis points worse than the prior-year quarter. Operating margin was 20.3%, 10 basis points worse than the prior-year quarter. Net margin was 15.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $666.8 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $3.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 660 members out of 688 rating the stock outperform, and 28 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 204 give Teradata a green thumbs-up, and six 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 $77.25.
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