Teradata Shares Surge 25% After Strong Q4 Results Beat Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy TDC?
Source: seekingalpha
- Strong Earnings Beat: Teradata reported Q4 revenue of $421 million, a 1% year-over-year increase that surpassed Evercore and Street estimates of $400 million, indicating robust performance in revenue growth.
- Return to ARR Growth: The company achieved Annual Recurring Revenue (ARR) of $1.522 billion, up 1%, significantly exceeding Evercore and Street estimates of $1.508 billion and $1.503 billion, highlighting business stability and growth potential.
- Cloud Business Outlook: While Cloud ARR growth of 13% was in line with expectations, management anticipates low double-digit growth in Cloud ARR by 2026, reflecting a strategic focus on hybrid deployment options.
- Divergent Analyst Ratings: Evercore maintained an Outperform rating and raised the price target to $40, while BofA kept an Underperform rating with a target of $31, indicating mixed market sentiment regarding Teradata's future performance.
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Analyst Views on TDC
Wall Street analysts forecast TDC stock price to fall
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 33.540
Low
24.00
Averages
30.11
High
42.00
Current: 33.540
Low
24.00
Averages
30.11
High
42.00
About TDC
Teradata Corporation offers a complete cloud analytics and data platform for artificial intelligence (AI). Teradata Vantage is the Company's open and connected platform that is designed to allow organizations to leverage all their data across an enterprise, in a hybrid environment. Teradata Vantage platform includes Teradata VantageCloud and Teradata VantageCore. Teradata VantageCloud is its flexible, connected, and modern cloud platform that includes Teradata VantageCloud Lake (built on its cloud-native lake architecture) and Teradata VantageCloud Enterprise. Teradata VantageCore (its on-premises platform) integrates with its cloud offerings to enable hybrid environments. Teradata Vantage's key capabilities across all deployments include ClearScape Analytics and Query Grid. ClearScape Analytics provides in-database engine analytics functionality, open and connected integrations, and operationalization at scale for effective data preparation, advanced analytics, and AI/ML performance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Recurring Revenue Growth: Annual recurring revenues (ARR) grew by 15% year-over-year, primarily driven by strong performance in the public cloud segment, showcasing the company's competitive edge and rising market demand in cloud computing.
- AI-Driven Future: CEO Steve McMillan emphasized that Teradata's autonomous AI and knowledge platform offers unique value to enterprises, which is expected to drive future business growth and further solidify its position in the data management and analytics sector.
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