Shares of Teradata (NYSE: TDC), the cloud data analytics platform provider, are skyrocketing 19.36% in pre-market trading on Wednesday, building on Tuesday's 14.87% gain. The surge comes in the wake of the company's impressive third-quarter earnings report, which significantly outperformed analysts' expectations.
Teradata reported adjusted earnings per share (EPS) of $0.72 for Q3, handily beating the consensus estimate of $0.54 by 33.33%. This represents a substantial improvement from the $0.69 per share reported in the same period last year. Revenue for the quarter came in at $416 million, surpassing analysts' projections of $406.22 million and marking a 2.41% beat. Investors were particularly encouraged by Teradata's cloud performance, with public cloud Annual Recurring Revenue (ARR) growing 11% year-over-year, reflecting strong demand for the company's cloud services and its successful transition to a cloud-first strategy.
Adding to the positive sentiment, Teradata provided an optimistic outlook for the fourth quarter, projecting adjusted EPS in the range of $0.53 to $0.57. The company also reaffirmed its full-year outlook for Total ARR, Cloud ARR, and Free Cash Flow, indicating confidence in its business model and growth strategy. In response to the strong results, several analysts have raised their price targets for Teradata. Morgan Stanley lifted its target to $30 from $28, maintaining an Overweight rating. Barclays, TD Cowen, and Northland Capital also increased their price targets, further boosting investor confidence in the stock's potential.
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