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Research Alert: CFRA Maintains Hold Rating On Shares Of Teradata Corporation

05/11/2021 20:38

12:35 AM EDT, 05/12/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target to $48 from $54, 29.1x our 2021 EPS estimate, below cloud-based enterprise data warehouse (EDW) peers, reflecting past growth challenges and the mixed sentiment surrounding the stock. We cut our 2021 EPS estimate to $1.65 from $2.05 and 2022's to $1.97 from $2.45. TDC prints Q1 EPS of $0.69, beating consensus by $0.21 and was at the high end of the range provided when it preannounced on April 21, 2021. Quarterly results were solid, but the dynamics that drove much of the upside (i.e., timing-related revenue recognition rather than sheer EDW uptake) temper some of our enthusiasm around the shares -- $0.16 of the EPS beat was attributed to $24M in recurring revenue being recognized in Q1, instead of ratably based on software usage, and does not meaningfully influence 2021 EPS figures ($1.61 to $1.67 expected currently). Q1 revenues came in at $491M, topping consensus by $22M, driven by annual recurring revenue (ARR) growth and narrowed losses in consulting (4% vs. 15% expected).