Teradata (TDC) shares are surging 14.58% in pre-market trading on Wednesday, following the company's impressive third-quarter earnings report released after market close on Tuesday. The cloud data analytics platform provider significantly outperformed analysts' expectations, demonstrating resilience in a challenging economic environment.
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 notable 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, despite a 5.45% year-over-year decrease.
Investors were particularly encouraged by Teradata's cloud performance, with public cloud Annual Recurring Revenue (ARR) growing 11% year-over-year. This growth reflects strong demand for the company's cloud services and its successful transition to a cloud-first strategy. Additionally, Teradata provided a positive 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. The strong earnings report and optimistic guidance have fueled investor enthusiasm, leading to the significant pre-market stock price surge.
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