Why Teradata Stock Crashed Today
Data management specialist Teradata (NYSE: TDC) reported first-quarter results after the closing bell on Thursday. The company exceeded Wall Street's estimates across the board, but market makers are focusing on management's modest full-year guidance. So Teradata shares fell as much as 14.8% on Friday morning.
First-quarter sales rose 13% year over year to $491 million. Earnings more than doubled from $0.27 to $0.69 per diluted share. The Street's consensus estimates called for earnings near $0.47 per share on revenue in the neighborhood of $468 million. Annual recurring revenue (ARR) in Teradata's public cloud division rose 176% to $1.4 billion, beating the company's guidance of at least 165% growth.
Looking ahead, Teradata raised the midpoint of its full-year adjusted earnings guidance from $1.54 to $1.64 per share. That's still below the current analyst view, which points to $1.71 per share.
Source Fool.com
