We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teradata (TDC) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Teradata (TDC - Free Report) reported fourth-quarter 2019 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate by 37.5%. The reported figure, however, plunged 55.1% year over year.
Revenues of $494 million also surpassed the consensus mark by 4.4%. However, the revenue figure declined 16% year over year. At constant currency (cc), revenues were down 15%.
Top-Line Details
Recurring revenues (70.9% of revenues) increased 6.7% year over year (up 7% at cc) to $350 million.
Perpetual software license and hardware revenues (6.1% of revenues) plummeted 69.1% from the year-ago quarter (down 69% at cc) to $30 million.
Consulting services revenues (23.1% of revenues) slid 30.1% from the year-ago quarter (down 30% at cc) to $114 million.
Teradata Corporation Price, Consensus and EPS Surprise
Revenues from Americas decreased 11.7% year over year (down 11% at cc) to $263 million. Europe, Middle East & Africa (EMEA) revenues declined 19.2% from the year-ago quarter (down 19% at cc) to $139 million. Revenues from Asia-Pacific (APAC) were down 22% from the year-ago quarter (down 21% at cc) to $92 million.
Total annual recurring revenues (ARR) at the end of 2019 increased 9.1% year over year (up 9% at cc).
Operating Details
Non-GAAP segment gross margin expanded 120 basis points (bps) year over year to 53.2%. While Americas gross margin expanded 380 bps, EMEA and APAC gross margin contracted 250 bps and 140 bps, respectively.
Recurring revenues gross margin shrunk 260 bps to 66% from the year-ago quarter.
Perpetual software license and hardware margin declined from the year-ago quarter’s 40.2% to 20%.
Consulting services operating income was $11 million, reflecting a slump of 56% year over year.
Non-GAAP operating margin contracted 290 bps on a year-over-year basis to 9.7%.
Balance Sheet & Other Details
As of Dec 31, 2019, Teradata had cash and cash equivalents of $494 million compared with $528 million as of Sep 30, 2019.
Total debt (including current portion), as of Dec 31, 2019 was $479 million compared with $596 million as of Sep 30.
In the fourth quarter, Teradata generated $54 million of cash from operating activities compared with the previous quarter’s $10 million. The company’s quarterly free cash flow came in at $41 million compared with the free cash outflow of $27 million witnessed in the previous quarter.
Moreover, Teradata repurchased around 2.2 million shares worth approximately $61 million.
Guidance
For 2020, Teradata expects ARR and recurring revenues to increase at least 8%.
Non-GAAP earnings are projected between $1.18 and $1.22 per share for the full year. The Zacks Consensus Estimate for 2020 earnings is currently pegged at $1.50, indicating a 52.1% jump from the figure reported in the year-ago quarter.
For first-quarter 2020, recurring revenues are expected between $353 million and $355 million.
Non-GAAP earnings are expected between 22 cents and 24 cents per share. The Zacks Consensus Estimate for the ongoing-quarter earnings is currently pegged at 30 cents, indicating 36.4% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, Teradata carries a Zacks Rank #3 (Hold).
Perion, Alteryx and CEVA are set to report quarterly results on Feb 12, 13 and 18, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Teradata (TDC) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
Teradata (TDC - Free Report) reported fourth-quarter 2019 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate by 37.5%. The reported figure, however, plunged 55.1% year over year.
Revenues of $494 million also surpassed the consensus mark by 4.4%. However, the revenue figure declined 16% year over year. At constant currency (cc), revenues were down 15%.
Top-Line Details
Recurring revenues (70.9% of revenues) increased 6.7% year over year (up 7% at cc) to $350 million.
Perpetual software license and hardware revenues (6.1% of revenues) plummeted 69.1% from the year-ago quarter (down 69% at cc) to $30 million.
Consulting services revenues (23.1% of revenues) slid 30.1% from the year-ago quarter (down 30% at cc) to $114 million.
Teradata Corporation Price, Consensus and EPS Surprise
Teradata Corporation price-consensus-eps-surprise-chart | Teradata Corporation Quote
Revenues from Americas decreased 11.7% year over year (down 11% at cc) to $263 million. Europe, Middle East & Africa (EMEA) revenues declined 19.2% from the year-ago quarter (down 19% at cc) to $139 million. Revenues from Asia-Pacific (APAC) were down 22% from the year-ago quarter (down 21% at cc) to $92 million.
Total annual recurring revenues (ARR) at the end of 2019 increased 9.1% year over year (up 9% at cc).
Operating Details
Non-GAAP segment gross margin expanded 120 basis points (bps) year over year to 53.2%. While Americas gross margin expanded 380 bps, EMEA and APAC gross margin contracted 250 bps and 140 bps, respectively.
Recurring revenues gross margin shrunk 260 bps to 66% from the year-ago quarter.
Perpetual software license and hardware margin declined from the year-ago quarter’s 40.2% to 20%.
Consulting services operating income was $11 million, reflecting a slump of 56% year over year.
Non-GAAP operating margin contracted 290 bps on a year-over-year basis to 9.7%.
Balance Sheet & Other Details
As of Dec 31, 2019, Teradata had cash and cash equivalents of $494 million compared with $528 million as of Sep 30, 2019.
Total debt (including current portion), as of Dec 31, 2019 was $479 million compared with $596 million as of Sep 30.
In the fourth quarter, Teradata generated $54 million of cash from operating activities compared with the previous quarter’s $10 million. The company’s quarterly free cash flow came in at $41 million compared with the free cash outflow of $27 million witnessed in the previous quarter.
Moreover, Teradata repurchased around 2.2 million shares worth approximately $61 million.
Guidance
For 2020, Teradata expects ARR and recurring revenues to increase at least 8%.
Non-GAAP earnings are projected between $1.18 and $1.22 per share for the full year. The Zacks Consensus Estimate for 2020 earnings is currently pegged at $1.50, indicating a 52.1% jump from the figure reported in the year-ago quarter.
For first-quarter 2020, recurring revenues are expected between $353 million and $355 million.
Non-GAAP earnings are expected between 22 cents and 24 cents per share. The Zacks Consensus Estimate for the ongoing-quarter earnings is currently pegged at 30 cents, indicating 36.4% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, Teradata carries a Zacks Rank #3 (Hold).
Perion Network (PERI - Free Report) , Alteryx and CEVA (CEVA - Free Report) are some better-ranked stocks in the broader computer and technology sector. All three stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Perion, Alteryx and CEVA are set to report quarterly results on Feb 12, 13 and 18, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>