The S&P 500 was falling more than 14 points, or 1.06%, to 1,353.
Shares of Teradata dropped 9.63% to $65.63. Rival Informatica (INFA) reported Thursday preliminary second-quarter earnings of 27 cents a share to 28 cents a share. Analysts, on average, were anticipating earnings of 37 cents a share.
Bloomberg reported BMO analyst Karl Keirstead said Informatica's earnings move "will likely raise concerns about Teradata, Tibco, Pegasystems, Oracle and IBM."Teradata trades at an estimated price-to-earnings ratio for next year of 30.9 times; the average among its peers is 31.87. For comparison, Oracle (ORCL) has a lower forward P/E of 14.71. Eleven of the 20 analysts who cover Teradata rated it buy; nine analysts gave the stock a hold rating. The stock has risen 35.31% year to date.
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