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In a challenging market environment, Teradata Corporation (NYSE: NYSE:TDC) stock has recorded a new 52-week low, dipping to $23.25. According to InvestingPro analysis, the stock appears undervalued at current levels, with multiple positive indicators including a favorable P/E ratio relative to near-term earnings growth. The data analytics and cloud-based data warehousing company has faced a significant downturn over the past year, with the stock price reflecting a 1-year change of -19.18%. Despite market challenges, InvestingPro data reveals the company maintains strong fundamentals with a healthy 61% gross profit margin and $315 million in EBITDA. Investors are closely monitoring Teradata’s performance as it navigates through the evolving demands of data management and analytics, which have been marked by rapid technological advancements and increasing competition. The company’s ability to adapt to these market dynamics remains a focal point for shareholders and potential investors as they assess the stock’s future trajectory. For deeper insights, investors can access comprehensive analysis and 12 additional ProTips through the detailed Pro Research Report available on InvestingPro.
In other recent news, Teradata Corporation has been the focus of both financial adjustments and internal shifts. Guggenheim Securities has lowered its price target for Teradata from $42 to $37, while maintaining a Buy rating. This adjustment follows repeated instances of Teradata missing financial targets, and the company’s announcement of a management change, with CFO Claire Bramley departing for another opportunity.
Despite these changes, Guggenheim continues to see strategic value in Teradata, particularly in its recurring revenue stream, even as the company’s Cloud Annual Recurring Revenue (ARR) target for 2025 has been revised down to approximately $700 million. However, Teradata’s recent fourth-quarter revenue fell short of analyst estimates, with the company posting a revenue of $409 million, down 11% year-over-year. Adjusted earnings per share, on the other hand, exceeded expectations at $0.53, compared to the anticipated $0.44.
Teradata’s outlook for 2025 has not met the expectations of analysts, with the company’s projected EPS of $0.55-$0.59 for Q1 2025, and full-year guidance of $2.15-$2.25, both falling below consensus estimates. Despite these recent developments, Guggenheim’s revised price target still implies a multiple below what the firm considers the intrinsic value of Teradata’s recurring revenue stream.
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