NEW YORK (TheStreet) -- Teradata (TDC) was falling -9.6% to $39.75 Thursday after forecasting full-year EPS and revenue towards the low end of its previous range, and despite beating analysts' expectations in the first quarter.
For the first quarter Teradata reported earnings of 54 cents a share, beating the Capital IQ Consensus Estimate of 47 cents a share by 7 cents. Revenue grew 7% to $628 million, compared to analysts' expectations of $615.13 million.
Looking forward to full-year 2014 the company expects EPS in the lower of $2.85 to $3.00 a share, while analysts expect $2.92 a share for the year. Terdata expects revenue growth of 3% to 7%, to between about $2.77 billion and $2.88 billion. Analysts expect revenue of $2.83 billion for the year.
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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 revenue growth, 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 weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity."