Teradata Lives Up to Sky-High Expectations

Updated

Shares of Teradata (NYS: TDC) jumped sky-high in pre-market action today thanks to a terrific second-quarter report. The shine came off after the opening bell as the Fed's soggy jobs figures put a damper on the entire market, but Teradata clings to modest gains even as most stocks are sagging today. Year to date, this stock has absolutely brutalized the broader market.

None of this should come as a surprise if you know what Teradata does. The company is a market leader in big data software and hardware tools, fighting off generalists at every turn. Oracle (NAS: ORCL) and IBM (NYS: IBM) simply can't compete with Teradata's hyper-efficient toolkits despite their humongous research budgets.

This strong market position showed in the second-quarter report. With $0.77 of non-GAAP earnings per share on $665 million in revenue, the company edged out the Street's sales targets (despite a 4% revenue headwind from currency exchange effects) and absolutely crushed the earnings consensus of $0.65 per share.


CEO Mike Koehler followed up by raising his revenue and earnings guidance for the full year. The beat followed from "technology leadership and expertise in data warehousing, big data analytics, and integrated marketing management," Koehler said. That one-two-three punch adds up to cost reductions and more efficient operations for Teradata's customers. It's no wonder why some of the largest data stores in the world rely on Teradata even after cheating around with competing products for a while.

Teradata is such a force in data management that we even call it "The Only Stock You Need To Profit From the NEW Technology Revolution" in a special report. Read all about Teradata by clicking here, but hurry up -- the report is totally free right now, but won't stay that way forever.

The article Teradata Lives Up to Sky-High Expectations originally appeared on Fool.com.

Fool contributorAnders Bylundholds no position in any of the companies mentioned. Check outAnders' holdings and bio, or follow him onTwitterandGoogle+. The Motley Fool owns shares of International Business Machines and Oracle.Motley Fool newsletter serviceshave recommended buying shares of Teradata and creating a synthetic long position in International Business Machines. The Motley Fool has adisclosure policy.We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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