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Teradata Shares Keep Soaring on Enthusiasm for Data Analytics

Teradata's shares continued their run higher, benefiting from its stronger-than-expected fourth-quarter earnings report last week.
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Teradata  (TDC) - Get Teradata Corporation Report shares remain on fire Tuesday, about doubling over the past three trading sessions, as investor enthusiasm for data analytics and cloud-based software companies builds.

The San Diego company continues to benefit from its stronger-than-expected fourth-quarter earnings report last week.

The stock recently traded at $53.36, up 11%, and has about doubled from Thursday’s close of $27.05. On Tuesday they touched a 52-week high $59.58, up 23% from Monday's close.

Net income registered $5 million, or 4 cents a share, in the fourth quarter, swinging from a loss of $19 million, or 17 cents a share, in the year-earlier period. 

The latest adjusted earnings per share totaled 38 cents, up from 22 cents and beating the FactSet-survey-derived analyst consensus of 25 cents.

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Teradata’s revenue dipped 1% to $491 million in the quarter from $494 million in the year-earlier quarter. But the latest figure exceeded the FactSet analyst consensus of $475.5 million.

Teradata estimates earnings of 38 cents to 40 cents a share for the first quarter, topping the analyst consensus estimate of 32 cents. And it predicts EPS of $1.50 to $1.58 for the full year, compared with the analyst consensus of $1.55.

“Our cloud-first focus has been recognized by our customers and the marketplace,” Chief Executive Steve McMillan said in a statement.

“Teradata achieved 165% growth in public cloud [annual recurring revenue] year-over-year and received significant industry endorsement as a leading cloud data platform.”

Further, “We are accelerating our cloud road map and bringing cloud-native integrations at a record pace," McMillan said.

Teradata expects to drive at least a doubling of cloud ARR, as well as year-over-year growth in total company revenue, profitability and free cash flow in 2021, he said.