Teradata Q4 Profit Declines, Meets View; Sees Weak Sales In FY16 - Quick Facts

(RTTNews) - Teradata Corp. (TDC), a provider of analytic data platforms, reported Thursday that its fourth-quarter net income plunged 65 percent to $41 million or $0.31 per share from last year's $118 million or $0.77 per share.

Excluding stock-based compensation expense and special items, adjusted net income was $94 million or $0.70 per share, compared to $140 million or $0.91 per share a year ago.

On average, 27 analysts polled by Thomson Reuters expected earnings of $0.70 per share. Analysts' estimates typically exclude special items.

Fourth-quarter revenue was $719 million, down 6 percent from last year's $761 million. Revenues dropped 1 percent in constant currency.

Analysts were looking for revenues of $701.21 million.

Looking ahead, Teradata said it expects to exit the majority of its Marketing Applications business around the end of the first quarter of 2016. The company's revenue guidance for the full year 2016 is expected to be in the $2.315 billion to $2.360 billion range, or down 7 to 8 percent from 2015. On a constant currency basis, GAAP revenue is expected to be down 5 to 7 percent.

On a non-GAAP basis, excluding the Marketing Applications business, Teradata's revenue is expected to be $2.275 billion - $2.320 billion, or down 8 to 10 percent on a reported basis and down 6 to 8 percent on a constant currency basis.

Earnings per share guidance of $1.68 to $1.83 includes the Marketing Applications business. On a non-GAAP basis, earnings per share is expected to be in the $2.35 - $2.50 range.

Analysts expect earnings of $2.30 per share on revenues of $2.37 billion for the year.