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Teradata issues Q3/2013 warning, shares -11.1% AH

  • Teradata (TDC) expects to Q3 revenue of $665M and EPS of $0.69-$0.70, below a consensus of $698.9M and $0.81. In addition, the company is now guiding for full-year revenue to be flat Y/Y and EPS to be in a range of $2.70-$2.80; the consensus is for 4.5% growth and EPS of $3.05. (PR)
  • Though Teradata believes its Americas and European revenue rose 7% and 13% Y/Y in Q3, respectively, Asia-Pac/Japan and Middle East/Africa are believed to have seen declines of 21% and 19%. Americas revenue rose 2% Y/Y in Q2, while its international revenue fell 1%.
  • $300M has been added to Teradata's buyback plan, raising the company's total repurchase authorization to $509M (good for repurchasing 6.7% of shares at current levels).
  • Teradata shot higher in August after reporting better-than-feared Q2 results and reiterating EPS guidance. But shares were pressured earlier this year by earning woes and concerns about share loss.
  • With Teradata now guiding for no revenue growth in a year when several peers are expected to post solid growth for their data warehousing and analytics product lines, those concerns might pop up again. On the other hand, defenders are likely to point to the regional disparities in Teradata's numbers as proof the company's problems are related to sales execution.
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