Teradata (NYSE:TDC) Posts Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Teradata beat quarterly expectations: The company reported adjusted earnings of $0.69 per share, $0.13 above estimates, while revenue reached $410 million versus the $396.13 million consensus.
• Shares rose 7.5% to $34.48 following the results, with trading volume more than double the stock’s average. Teradata has a $3.24 billion market capitalization and a price-to-earnings ratio of 7.91.
• Analyst sentiment remains mixed: The stock carries a consensus “Hold” rating and a $35.56 average price target, while insiders have sold 77,201 shares worth about $2.49 million over the past 90 days.

Teradata (NYSE:TDC - Get Free Report) issued its earnings results on Tuesday. The technology company reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.13, FiscalAI reports. Teradata had a net margin of 24.93% and a return on equity of 57.44%. The business had revenue of $410.00 million for the quarter, compared to analyst estimates of $396.13 million.

Teradata Trading Up 7.5%

Teradata stock traded up $2.39 during trading hours on Tuesday, reaching $34.48. 5,022,894 shares of the company's stock traded hands, compared to its average volume of 2,375,428. The firm's 50 day moving average is $32.51 and its 200-day moving average is $30.13. Teradata has a fifty-two week low of $19.96 and a fifty-two week high of $41.78. The firm has a market capitalization of $3.24 billion, a price-to-earnings ratio of 7.91, a PEG ratio of 2.28 and a beta of 0.60. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.29 and a current ratio of 1.30.

Insider Activity

In related news, CEO Stephen Mcmillan sold 20,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $31.71, for a total value of $634,200.00. Following the completion of the sale, the chief executive officer owned 762,446 shares in the company, valued at approximately $24,177,162.66. This represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Timothy C. K. Chou sold 5,657 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $33.72, for a total value of $190,754.04. Following the completion of the transaction, the director directly owned 39,210 shares in the company, valued at $1,322,161.20. The trade was a 12.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 77,201 shares of company stock valued at $2,486,235 in the last 90 days. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On Teradata

Several institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC bought a new stake in shares of Teradata in the 4th quarter valued at about $275,000. Invesco Ltd. boosted its stake in Teradata by 0.3% during the 4th quarter. Invesco Ltd. now owns 540,609 shares of the technology company's stock worth $16,456,000 after acquiring an additional 1,707 shares during the last quarter. State of Tennessee Department of Treasury grew its holdings in Teradata by 23.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 50,482 shares of the technology company's stock valued at $1,440,000 after purchasing an additional 9,754 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new position in Teradata during the fourth quarter valued at approximately $67,125,000. Finally, NewEdge Advisors LLC increased its stake in Teradata by 29.8% in the fourth quarter. NewEdge Advisors LLC now owns 19,441 shares of the technology company's stock valued at $592,000 after purchasing an additional 4,468 shares in the last quarter. 90.31% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have recently weighed in on TDC. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $34.00 price objective on shares of Teradata in a research note on Thursday, July 16th. Barclays dropped their price objective on Teradata from $29.00 to $28.00 and set an "underweight" rating for the company in a research note on Wednesday, May 6th. Zacks Research downgraded shares of Teradata from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 20th. Citigroup reiterated a "buy" rating on shares of Teradata in a research report on Wednesday, July 29th. Finally, UBS Group reduced their price target on shares of Teradata from $36.00 to $34.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Teradata currently has a consensus rating of "Hold" and a consensus target price of $35.56.

About Teradata

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata's product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

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