Teradata (TDC) Stock Rallies Despite Revenue Miss
NEW YORK (TheStreet) -- Teradata (TDC) - Get Report stock is popping, up by 13.19% to $28.95 on heavy trading volume Friday, despite the company's 2015 third quarter revenue results missing expectations.
Before the market open on Thursday, the Dayton, OH-based company, which provides analytical data platforms, reported earnings of 55 cents per share. Revenue declined 3% year over year to $606 million.
Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 55 cents per share on revenue of $638.36 million.
Teradata announced yesterday that it was selling its Marketing Applications business.
"As part of our business transformation, we determined it best to exclusively focus our investments and attention on our core Data and Analytics business," CEO Mike Koehler said in a statement. "We are making transformative changes to the company for longer term success, and are also aligning our cost structure for near term improvement."
So far today, 5.17 million shares of Teradata have traded, versus the company's 30-day average of 2.4 million shares.
Separately, TheStreet Ratings team rates TERADATA CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate TERADATA CORP (TDC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: TDC
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