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In a challenging market environment, Teradata Corporation (NYSE:TDC) stock has touched a 52-week low, dipping to $21.79. The data analytics and cloud company has faced significant headwinds over the past year, with a 40.35% decline. According to InvestingPro analysis, the stock appears undervalued at current levels, with management actively buying back shares to support shareholder value. Investors have shown concern as the company navigates through a rapidly evolving technological landscape, where competition and innovation are key drivers of success. The current price level marks a critical point for Teradata, as stakeholders closely monitor the company’s strategic moves to rebound from this low point. Despite revenue declining 4.53%, the company maintains a healthy gross profit margin of 60.74% and an overall GOOD financial health score. For deeper insights into Teradata’s valuation and 12 additional ProTips, explore InvestingPro.
In other recent news, Teradata Corporation reported its fourth-quarter revenue at $409 million, which fell short of analyst estimates of $414.95 million, marking an 11% decline year-over-year. Despite this, adjusted earnings per share surpassed expectations, reaching $0.53 against the anticipated $0.44. However, Teradata’s guidance for 2025 disappointed investors, with expected EPS for Q1 2025 at $0.55-$0.59, below the $0.64 analyst consensus, and full-year 2025 EPS guidance of $2.15-$2.25, missing the Street’s $2.46 projection.
In a strategic move, Teradata launched its Enterprise Vector Store, integrating NVIDIA (NASDAQ:NVDA)’s NeMo Retriever microservices to enhance data processing capabilities. This product is currently available in a private preview, with a broader release anticipated in July 2025. Additionally, Guggenheim Securities adjusted its price target for Teradata to $37 from $42, maintaining a Buy rating despite concerns over financial targets and management changes.
The company has also announced a leadership change, promoting Michael Hutchinson to Chief Operating Officer, where he will oversee global operations and continue to lead Teradata Global Customer Services. Meanwhile, CFO Claire Bramley will leave the company by the end of March to pursue an opportunity outside Teradata’s industry. These developments come amid Teradata’s ongoing efforts to address challenges and improve its financial performance.
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