Teradata Issues Outlook, Shares Plunge; Names Victor Lund Interim President, CEO

(RTTNews) - Teradata Corp. (TDC) announced, for the full-year, the company now expects on a non-GAAP basis earnings per share in the $0.95 to $1.00 range. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.49. Analysts' estimates typically exclude special items. Annual recurring revenue or ARR is anticipated to increase at least 8% and recurring revenue to increase approximately 8% to 9%.

For the fourth quarter, non-GAAP earnings per share is expected to be in the $0.13 to $0.18 range. Recurring revenue is expected to be in the $348 million to $350 million range. Analysts expect the company to report profit per share of $0.58.

For the third-quarter, non-GAAP earnings per share was $0.32 compared to $0.36, prior year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.40, for the quarter.

Total third-quarter revenue was $459 million, compared to $526 million, last year. Analysts expected revenue of $485.55 million, for the quarter. Recurring revenue increased 10%, 11% in constant currency, from the third quarter of 2018. Annual recurring revenue increased 12%, 14% in constant currency, from the prior-year period.

Separately, Teradata said, it has appointed Victor Lund, Executive Chairman of Board of Directors, as Interim President and Chief Executive Officer, effective immediately. Ratzesberger is no longer serving as President and CEO. The company's Board has established a CEO Search Committee.

Teradata also announced the election of Kim Nelson to its board, effective November 5, 2019. Ms. Nelson has served as Executive Vice President & Chief Financial Officer of SPS Commerce, Inc. Previously, she led investor relations and held senior finance positions at Amazon.com.

Shares of Teradata Corp. were down nearly 17% after hours.