What happened
Shares of cloud analytics company Teradata (NYSE:TDC) skyrocketed on Thursday. Shares jumped as much as 35.3%, and as of 10:20 a.m. EDT today, the growth stock was up about 30%.
The stock’s sharp gain follows the release of the company’s preliminary first-quarter earnings per share and its revised forecast for growth in the annual value of the cloud contracts for its Teradata Vantage analytics service.
So what
Teradata now expects adjusted EPS between $0.67 and $0.69, up from a previous forecast for $0.38 to $0.40. The company is guiding for the annual value of its Teradata Vantage cloud contracts (often referred to by the company as public cloud ARR) to increase by $16 million to $18 million during the quarter. Previously, management was expecting public cloud ARR growth of $10 million to $15 million during the period.
On the heels of these strong results, RBC Capital analyst Matthew Hedberg raised his 12-month price target for the stock from $27 to $45. He notes that the preliminary results suggest public cloud growth has accelerated on a sequential basis.
Now what
Investors will get more details about the quarter when Teradata reports its official first-quarter results, which is scheduled after market close on Thursday, May 6.
