Teradata Analysts Cut Their Forecasts After Q4 Results

Teradata Corporation TDC reported better-than-expected results for its fourth quarter, but issued weak earnings guidance on Monday.

Teradata reported quarterly 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, according to data from Benzinga Pro.

The company 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.

“Teradata ended 2023 with $528 million of Cloud ARR, delivering ten-fold growth in less than four years,” said Steve McMillan, CEO of Teradata. “Companies everywhere are experimenting with AI to innovate their business and we are excited to be at the center of the AI era.”

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.

Teradata shares fell 23.8% to trade at $37.17 on Tuesday.

These analysts made changes to their price targets on Teradata after the company reported quarterly results.

• RBC Capital cut the price target on Teradata from $59 to $48. RBC Capital analyst Matthew Hedberg maintained a Sector Perform rating.
• B of A Securities slashed the price target on Teradata from $58 to $48. B of A Securities analyst Wamsi Mohan downgraded the stock from Buy to Neutral.
• Morgan Stanley cut the price target on Teradata from $74 to $48. Morgan Stanley analyst Erik Woodring downgraded the stock from Overweight to Equal-Weight.

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