Teradata Stock Tumbles After Earnings: What's Going On?

Teradata Corporation TDC shares are trading lower Tuesday after the company issued first-quarter and fiscal year 2024 guidance below estimates with its fourth-quarter financial results on Monday.

The Details:

Teradata issued guidance below estimates and sees first-quarter earnings of between 53 cents and 57 cents per share, versus the 73 cents per share estimate. The company expects fiscal year 2024 earnings of between $2.15 and $2.31 per share, versus the $2.38 per share estimate.

The company reported fourth-quarter earnings of 56 cents per share which beat the analyst consensus estimate of 51 cents by 9.8% and is a 60% increase over earnings of 35 cents per share from the same period last year.

Teradata reported quarterly sales of $457 million, beating the analyst consensus estimate of $456.79 million by 0.05% and representing a 1.11% increase over sales of $452 million year-over-year.

Following the earnings release, RBC Capital analyst Matthew Hedberg maintained Teradata with a Sector Perform and lowered the price target from $59 to $48.

However, JMP Securities analyst Patrick Walravens reiterated Teradata with a Market Outperform and maintained a $72 price target.

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TDC Price Action: According to Benzinga Pro, Teradata shares are down 23.5% at $37.33 at the time of publication.

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