Teradata shares plunge on lower expectations


Shares of one of the Miami Valley’s biggest publicly traded companies fell sharply Tuesday after the company lowered earnings expectations for the rest of the year.

Shares of Miami Twp.-based Teradata Corp. fell 18 percent, or $9.67, to $42.91 in extremely heavy trading Tuesday. Trading volume on the stock (NYSE: TDC) topped 20 million shares, compared with an average daily volume of 1.4 million shares.

Teradata late Monday said it expects revenue for the quarter that ended Sept. 30 to be approximately $665 million, up 4 percent compared to the same time last year. Third-quarter earnings per share will be about 58 to 59 cents per share on a U.S. Generally Accepted Accounting Principles (GAAP) basis, and about 69 to 70 cents on a non-GAAP basis, the company said.

“As a result, Teradata is lowering its full-year guidance for 2013 to reflect the preliminary third quarter results and its current expectations for the fourth quarter,” the data analytics company said in a statement Monday.

The guidance was below analyst expectations.

International revenue in the third quarter declined about 2 percent, compared to the same period a year earlier when revenue grew 23 percent, Teradata said. Full-year 2013 revenue is now expected to be about the same as 2012 full-year revenue, the company said.

The company reports third quarter results Oct. 31.

One analyst has a “sell” rating on Teradata shares, while 12 put a “hold” rating and another 12 had a “buy” rating on the stock, according to reports.

Long-term, the stock and the company remain a healthy investment, at least one analyst told clients in a note Tuesday.

“While we were disappointed with results, we believe downside in the stock is limited and still feel that TDC is well-positioned for big-data related investments,” wrote J. Derrick Wood, an analyst for Susquehanna Financial Group.

“Big data” refers to harnessing large sets of information from various sources to help direct businesses.

A Teradata spokesman declined to comment.

The company has some 400 employees locally and more than 10,000 employees in 42 countries.


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