Teradata
(
TDC
) has posted four straight positive earnings surprises and is now a
Zacks #1 Rank (Strong Buy).
Company Description
Teradata Corporation provides analytic data solutions worldwide.
The company offers various data warehousing solutions is comprised
of software, hardware and related business consulting and support
services. Further, the company provides consulting services, such
as data warehousing business impact modeling, design, architecture,
installation, implementation, and optimization consulting services.
Teradata Corporation was founded in 1979 and is headquartered in
Dayton, Ohio.
Teradata Tops Estimates in Four Straight Quarters
Teradata topped the Zacks Consensus Estimate in each of the last
four quarters. The average beat has been $0.04 above the Zacks
Consensus Estimate which works out to be an average beat of 7.4%.
As a result of the positive earnings surprises, the stock has moved
higher by an average of 1.5% following the earnings releases.
The largest price movement in the stock came the day after the
company reported the December 2011 quarter. Teradata beat the
topline estimate of $641 million by posting revenues of $673
million. EPS of $0.63 was $0.04 higher than the $0.59 Zacks
Consensus Estimate and the stock moved higher by about 7%.
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Teradata Most Recent Reported Earnings
On May 3, 2012 Teradata reported revenue of $613 million, about $28
million more than the Zacks Consensus Estimate and up from $506
million reported in year ago quarter, an increase of of 21%.
Earnings per share came in at $0.56, $0.04 higher than the Zacks
Consensus Estimate of $0.52. The beat of 7.7% helped the stock rise
1.3% in the session following the earnings release.
Teradata Sees Estimates Moving Higher
Teradata has seen earnings estimates move higher following the
recent positive earnings surprise. The Zacks Consensus Estimate for
2012 was as low as a loss of $2.44 in January 2012 and has since
moved higher to $2.53.
Valuation
Teradata carries a valuation that is almost double the industry
average for most of the major metrics that aggressive growth
investors look at. The trailing twelve months PE multiple of 28x is
just under twice the industry average of 15x. The forward PE
multiple of 25x is more than twice the industry average of 10x.
Similarly, the more conservative measure of price to book shows
6.7x mulitple is higher than 3.9x multiple and the price to sales
multiple of 4.5x is more than double the industry average of 2.2x.
The Chart
A quick look at the chart shows a stock that was a little late to
the rally that started for most stocks in October and November of
2011. A recent spike above $77 per share was a high point and the
stock has since sold off somewhat dramatically following the most
recent earnings report. As the market consolidates, Teradata is
likely to do so as well, but its lower price and excellent track
record of growth makes current levels a good entry point for an
aggressive growth investment. Teradata is a Zacks #1 Rank (Strong
Buy).
Brian Bolan is the Aggressive Growth Stock Strategist for
Zacks.com. He is also the Editor in charge of the
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TERADATA CORP (TDC): Free Stock Analysis Report
TERADATA CORP (TDC): Free Stock Analysis Report
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