Teradata (TDC) shares tumbled 5.92% in after-hours trading on Tuesday following the release of its first-quarter earnings report and outlook. The cloud-based data analytics company's results were mixed, with a revenue miss overshadowing an earnings beat, while its forward guidance raised concerns among investors.
For the first quarter, Teradata reported revenue of $418 million, falling short of the $424.1 million estimated by analysts. However, the company's adjusted earnings per share (EPS) of $0.66 surpassed the expected $0.56. The adjusted gross margin for the quarter stood at 60.3%, showing a slight improvement from the reported gross margin of 59.3%.
The after-hours sell-off appears to be driven by the company's guidance for the second quarter and full year. Teradata forecasts Q2 adjusted EPS between $0.37 and $0.41, with GAAP EPS ranging from $0.02 to $0.06. For the full year, the company expects adjusted EPS of $2.15 to $2.25, while GAAP EPS is projected to be between $1.06 and $1.16. These figures suggest potential challenges ahead, likely contributing to investor concerns. Additionally, Teradata announced the appointment of John Ederer as its new Chief Financial Officer, effective May 12, which could be seen as a move to navigate the company through its current financial landscape.