Teradata (TDC - Analyst Report) has posted
four straight positive earnings surprises and is now a
Zacks #1 Rank
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
Teradata Tops Estimates in Four Straight
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
The largest price movement in the stock came the day after
the company reported the December 2011 quarter. Teradata
topline estimate of $641 million by posting
revenues of $673 million. EPS of $0.63 was $0.04 higher than the
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
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
and has since moved higher to $2.53.
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.
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
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
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