Teradata shares drop sharply on weak results, outlook
DAYTON, Ohio (AP) — Shares of Teradata Corp. plummeted to a six-year low Thursday after it posted disappointing results for the third quarter and cut its full-year outlook.
The data management company now expects earnings per share for the year between $2 and $2.20, down from its previous forecast between $2.20 and $2.50. Analysts expected earnings of $2.42 per share on average, according to FactSet.
Teradata expects revenue to drop between 6 percent and 8 percent, a larger drop than the 3 percent to 6 percent decline it previously said it expected. Analysts expected revenue to fall 5.6 percent to $2.58 billion, according to FactSet.
Teradata reported third-quarter earnings of $78 million, or 55 cents per share, missing Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 56 cents per share.
The Dayton, Ohio-based company posted revenue of $606 million in the period, also missing Street forecasts. Nine analysts surveyed by Zacks expected $632.8 million.
Shares of Teradata fell $4.29, or 14.4 percent, to $25.50 in afternoon trading Thursday. Its shares fell to $24 earlier in the day, its lowest point since July 2009.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TDC at http://www.zacks.com/ap/TDC
Keywords: Teradata, Earnings Report