Shares of Teradata Corp Fall by 19.16%




In this series, we will analyze the weekly performance of the First Trust ISE Cloud Computing Index ETF (SKYY), as well as the performance of subsectors in this ETF.

Last week, SKYY generated returns of -1.33% to close at $42.12 on Friday, August 7, 2015. In comparison, the SPDR S&P 500 ETF generated returns of -1.21% over the last week.

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Subsector performance

In the above chart, we can see that Teradata’s Communications Equipment subsector generated returns of -0.95%. Subsectors that have outperformed SKYY include Internet Retail, Internet Software and Services, and Home Entertainment Software, with returns of 3.26%, 3.19%, and 1.54%, respectively.

Activision Blizzard (ATVI) generated returns of 11.59% last week while Netflix (NFLX) and Zynga (ZNGA) generated returns of 8.06% and 6.45%, respectively. Teradata (TDC), Rackspace, and Apple (AAPL) generated returns of -19.16%, -5.82%, and -4.77% respectively, in the last week.

Teradata declares disappointing 2Q15 results

On August 6, 2015, Teradata Corp. (TDC) declared its 2Q15 results and reported revenues of $623 million, missing analyst estimates of $651 million. Diluted earnings per share (or EPS) also declined from $0.72 per share in 2Q14 to $0.53 per share in 2Q15. Analysts expected diluted EPS to be around $0.56.

Teradata’s management noted that revenues were impacted negatively in 2Q15 due to a slower sales cycle and an unexpected delay in closing several large orders. A strong US dollar has also contributed to this decline in revenues. Without currency headwinds, revenues would have declined by 2% on a year-over-year basis.

Teradata (TDC) constitutes 3.18% of the First Trust ISE Cloud Computing Index ETF (SKYY) and 0.18% of Technology Select Sector SPDR ETF (XLK).


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