Teradata Q2 revenue beats analyst expectations
Overview
Teradata Q2 revenue falls 6% but beats analyst expectations, per LSEG data
Adjusted EPS of $0.47 surpasses analyst estimates, per LSEG data
Public cloud ARR rises 17%, driving growth in cloud segment
Outlook
Teradata expects Q3 GAAP EPS of $0.24 to $0.28
Company sees Q3 non-GAAP EPS of $0.51 to $0.55
Teradata forecasts full-year GAAP EPS of $1.04 to $1.12
Company anticipates full-year non-GAAP EPS of $2.17 to $2.25
Result Drivers
CLOUD GROWTH - Public cloud ARR increased 17%, driving growth in the cloud segment
RECURRING REVENUE DECLINE - Recurring revenue decreased by 4%, impacting total revenue
HYBRID DATA ENVIRONMENTS - Focus on hybrid data and analytics environments for AI implementation, per CEO Steve McMillan
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $408 mln | $400 mln (9 Analysts) |
Q2 Adjusted EPS | Beat | $0.47 | $0.4 (10 Analysts) |
Q2 Gross Margin | 56.4% | ||
Q2 Adjusted Gross Margin | 58.3% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Teradata Corp is $25.00, about 18.6% above its August 4 closing price of $20.36
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
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