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Analyzing Teradata’s Stock Movement: Disappointing 1Q15 Results

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About Teradata

Teradata (TDC) is a US company that sells analytic data platforms, applications, and related services. It was founded in 1979. It’s headquartered in Ohio. Its products are meant to consolidate data from different sources and make the data available for analysis. Teradata accounts for 0.27% of the Technology Select Sector SPDR Fund ETF (XLK).

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Moving averages and closing price

Teradata’s last trading price, or closing price, on May 19, 2015, was $40.29. This was lower than its 20, 50, and 100-day moving averages. Teradata’s 20-day moving average price is $42.67. The firm’s 50-day moving average price is $43.19, while its 100-day moving average price is $43.63.

Teradata is trading 5.90%, 7.20%, and 8.31% below its 20, 50, and 100-day moving averages, respectively.

Disappointing 1Q15 results

On May 7, 2015, Teradata announced its 1Q15 results. It reported revenue of $582 million for the quarter ending March 31, 2015—compared to $628 million reported in 1Q14. The revenue decreased by over 7% on a YoY (year-over-year) basis. Teradata reported a decline in net income. It was reported at $22 million for 1Q15—compared to revenue of $59 million in 1Q14. The EPS (earnings per share) decreased from $0.37 per diluted share in 1Q14 to $0.15 per diluted share in 1Q15.

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According to a research report from Gartner, the main reasons for Teradata’s decline in revenue include a “sluggish spending environment” in domestic as well as global markets and increased competition with firms like EMC (EMC), NetApp (NTAP), and Oracle (ORCL). The competition negatively impacted Teradata’s margins and resulted in pricing pressure.

Other companies’ moving averages

EMC’s closing price was $26.86 on May 19, 2015. This was higher than its 20 and 50-day moving averages of $26.76 and $26.33, respectively. However, it was marginally lower than its 100-day moving average of $27.33.

NetApp’s closing price was $35.35 on May 19, 2015. This was lower than its 20, 50, and 100-day moving averages of $35.85, $36.08, and $37.60, respectively.

Oracle’s closing price was $44.32 on May 19, 2015. This was higher than its 20, 50, and 100-day moving averages of $43.92, $43.44, and $43.54, respectively.

Future outlook

Teradata’s long-term outlook is positive. The firm should benefit from expansion in international markets, the introduction of new products, and an increase in the overall market share.

In the next part of this series, we’ll discuss CenturyLink’s stock movement with respect to its moving averages.

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