Teradata (TDC) Stock Slumping as Revenue Misses
NEW YORK (TheStreet) -- Shares of Teradata (TDC) - Get Report are down by 14.85% to $25.37 on Thursday morning, after the information technology services provider reported 2015 third quarter revenue results that fell short of analysts' expectations.
Before the open today, the company reported non-GAAP earnings of 55 cents per share on a 3% year over year decline in revenue to $606 million for the most recent quarter.
Analysts surveyed by Thomson Reuters had forecast for earnings of 55 cents per share on revenue of $638.36 million for the three month period ending September 30.
Looking ahead to the full year, the company is lowering its revenue guidance to about a 6% to 8% revenue decline on a year over year basis. Non-GAAP earnings are expected to be between $2 and $2.20 for the year.
Analysts are expecting full year earnings of $2.07 per share on revenue of $1.54 billion.
"We remain confident in Teradata's technology, our roadmaps and competitive leadership position in the market and we are taking actions to increase shareholder value. We are making transformative changes to the company for longer term success, and are also aligning our cost structure for near term improvement," company CEO Mike Koehler said in a statement.
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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