The 10-second takeaway
For the quarter ended March 31 (Q1), Teradata missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Teradata logged revenue of $587.0 million. The 18 analysts polled by S&P Capital IQ expected revenue of $609.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.43. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. Non-GAAP EPS of $0.43 for Q1 were 28% lower than the prior-year quarter's $0.60 per share. GAAP EPS of $0.35 for Q1 were 34% lower than the prior-year quarter's $0.53 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 52.0%, 360 basis points worse than the prior-year quarter. Operating margin was 12.8%, 840 basis points worse than the prior-year quarter. Net margin was 10.1%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $670.7 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $2.81 billion. The average EPS estimate is $3.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 703 members out of 733 rating the stock outperform, and 30 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 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 $75.26.
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