Teradata Corporation's (NYSE:TDC) stock price plunged 6.38% in after-hours trading on November 4th, despite the company reporting better-than-expected third-quarter results. The decline was primarily driven by Teradata's weaker-than-anticipated earnings guidance for the fourth quarter, which overshadowed the solid performance in Q3.
For the third quarter of fiscal 2024, Teradata reported revenue of $440 million, surpassing analysts' consensus estimate of $416.97 million. The company's adjusted earnings per share (EPS) of $0.69 also exceeded the Street's expectation of $0.56. Encouraged by the strong Q3 performance, Teradata raised its full-year adjusted EPS guidance to a midpoint of $2.32, representing a 4% increase.
However, the company's fourth-quarter adjusted EPS guidance range of $0.40 to $0.44 fell short of the consensus estimate of $0.48. This weaker-than-expected outlook seems to have overshadowed the positive Q3 results and raised concerns among investors about Teradata's future growth prospects.
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