Teradata Corporation TDC held its fourth-quarter financial call on Monday. The results underwent close scrutiny by investors and analysts. Here is an analysis of the key details and subsequent market reaction.
The Breakdown
Teradata posted fourth-quarter earnings of 56 cents per share, surpassing the analyst consensus estimate by 9.8%. This marks a substantial 60% surge from the 35 cents per share reported during the corresponding period a year earlier.
The company reported quarterly sales of $457 million, slightly outpacing the analyst consensus estimate by 0.05%. This represents a 1.11% increase over the sales of $452 million from the prior year.
Steve McMillan, CEO of Teradata, highlighted, “Teradata concluded 2023 with $528 million of Cloud Annual Recurring Revenue (ARR), showcasing a ten-fold growth in less than four years. This underscores the growing traction of our services in the market.”
McMillan added, “Trusted data is an imperative for breakthrough innovation, and we are committed to delivering harmonized data and trusted AI through our open AI platform. We aim to empower our customers and solidify Teradata as their strategic partner in achieving success.”
On the flip side, Teradata issued guidance below expectations. The first-quarter earnings outlook of 53 to 57 cents per share fell short of the 73 cents per share estimate. Moreover, the company anticipates fiscal year 2024 earnings to be between $2.15 and $2.31 per share, compared to the $2.38 per share estimate.
Market Reaction
Following the announcement, Teradata’s stock suffered a decline of 13.4% after-hours, trading at $42.26 at the time of publication.
Image: Akela999 from Pixabay
