Overview

* Teradata ( TDC ) Q2 revenue falls 6% but beats analyst expectations, per LSEG data

* Adjusted EPS of $0.47 surpasses analyst estimates, per LSEG data

* Public cloud ARR rises 17%, driving growth in cloud segment

Outlook

* Teradata ( TDC ) expects Q3 GAAP EPS of $0.24 to $0.28

* Company sees Q3 non-GAAP EPS of $0.51 to $0.55

* Teradata ( TDC ) forecasts full-year GAAP EPS of $1.04 to $1.12

* Company anticipates full-year non-GAAP EPS of $2.17 to $2.25

Result Drivers

* CLOUD GROWTH - Public cloud ARR increased 17%, driving growth in the cloud segment

* RECURRING REVENUE DECLINE - Recurring revenue decreased by 4%, impacting total revenue

* HYBRID DATA ENVIRONMENTS - Focus on hybrid data and analytics environments for AI implementation, per CEO Steve McMillan

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $408 mln $400 mln

Revenue (9

Analysts

)

Q2 Beat $0.47 $0.4 (10

Adjusted Analysts

EPS )

Q2 Gross 56.4%

Margin

Q2 58.3%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Teradata Corp ( TDC ) is $25.00, about 18.6% above its August 4 closing price of $20.36

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)