BMO Capital Markets reissued their market perform rating on shares of Teradata Corp. (NYSE:TDC) in a research note released on Tuesday morning, AnalystRatings.NET reports.
“Based on guidance, this does not appear to be a one quarter slippage of deals. Management is lowering estimates for both Sept and Dec Qs. Sept Q revs are expected be $665 million vs. our/Street of $705/$700 million, and Dec Q revs are expected to be around $745 million vs. our/Street of $828/$827 million. We are unclear why emerging markets and Japan are so weak. We have been of the view that TDC’s longer-term revenue growth rate is 8%-10% y/y, not double digits. We note that US and European growth is roughly within this target growth rate. Therefore, we are left to wonder if emerging markets plus Japan are experiencing (1) macro demand weakness, (2) sales leadership, or (3) competitive issues. These geographies have been weak for a few quarters. If we assume that TDC can grow revs in the 7%-8% y/y range over the next two years, and EPS grows by 10%, this would suggest that EPS in FY15 could be about $3.30. Further, we believe that TDC should trade at a premium to the market with these growth rates, so perhaps a 16x-17x multiple. Therefore, we think TDC could, over time, return to a mid-$50 type of stock. However, as we head to a TDC user group event next week, we will seek to clarify the reason for the discrepancy between US/Europe and rest of world sales, and test our thesis that TDC can drive 7%-8% y/y top-line growth.,” the firm’s analyst wrote.
Shares of Teradata Corp. (NYSE:TDC) traded up 2.56% on Tuesday, hitting $42.54. The stock had a trading volume of 5,069,804 shares. Teradata Corp. has a 52-week low of $41.11 and a 52-week high of $74.39. The stock’s 50-day moving average is $56.20 and its 200-day moving average is $55.90. The company has a market cap of $6.938 billion and a price-to-earnings ratio of 18.33.
Teradata Corp. (NYSE:TDC) last announced its earnings results on Thursday, August 1st. The company reported $0.76 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.71 by $0.05. The company had revenue of $670.00 million for the quarter, compared to the consensus estimate of $670.70 million. During the same quarter last year, the company posted $0.77 earnings per share. Teradata Corp.’s revenue was up .8% compared to the same quarter last year. Analysts expect that Teradata Corp. will post $2.79 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at William Blair reiterated an outperform rating on shares of Teradata Corp. in a research note to investors on Tuesday. Separately, analysts at KeyCorp reiterated a hold rating on shares of Teradata Corp. in a research note to investors on Tuesday. Finally, analysts at Wellington Shields downgraded shares of Teradata Corp. to a hold rating in a research note to investors on Tuesday. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and twelve have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average price target of $57.84.
Teradata Corporation (NYSE:TDC) is engaged in analytic data solutions, including integrated data warehousing, big data analytics and business applications.
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