Teradata closed trading at $37.96
Teradata (TDC), a data platform and consulting company, fell 4.8% on September 17. The stock is currently trading at $37.96, which is 19% above its 52-week low of $31.77 and 14% below its 52-week high of $44.27.
The stock has fallen 1.3% this year and 8.5% in September. While TDC has managed to beat earnings estimates comfortably in the last four quarters, there are concerns over its declining revenue in fiscal 2018.
Revenue expected to fall 0.5% in 2018
TDC’s revenue is estimated to rise 1.7% YoY (year-over-year) to $535 million in the third quarter and then fall 10.6% in the fourth quarter to $560 million. That translates to a revenue decline of 0.5% YoY to $2.14 billion.
Analysts expect TDC’s sales to rise 2.5% YoY to $2.2 billion in 2019 and 2.7% YoY to $2.26 billion in 2020. While its EPS is expected to fall 6% in 2018, it’s estimated to rise 29.5% in 2019 to $1.58.
Its EPS is expected to grow at a compound annual growth rate of 15.9% over the next five years compared to a decline of 19% in the last five years.
Of the 22 analysts tracking TDC, two have recommended a “buy” for the stock, and 12 have recommended a “hold.” Eight have recommended a “sell.” The average 12-month target price for TDC is $41.06, indicating that the stock is trading at a discount of 8% to its current price.