Teradata shares drop on earnings, outlook disappointment, CEO resignation

Published: Nov 7, 2019 5:01 p.m. ET

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Teradata Inc. TDC, +5.07% shares dropped in the extended session Thursday after the cloud-based data analytics company's outlook and earnings fell short of Wall Street views and the company said its chief executive had stepped down on Tuesday. Teradata shares dropped 17% after hours, following a 2.9% rise in the regular session to close at $31.12. Teradata said it now expects adjusted earnings of 13 cents to 18 cents a share for the fourth quarter, and 95 cents to $1 for the year. Analysts surveyed by FactSet had forecast 58 cents a share for fourth quarter and $1.49 a share for the year. The company reported third-quarter net income of $10 million, 9 cents a share, compared with $18 million, or 15 cents a share, in the year-ago period. Adjusted earnings were 32 cents a share. Revenue declined to $459 million from $526 million in the year-ago quarter. Analysts had forecast earnings of 40 cents on revenue of $485 million. Teradata also announced that president and CEO Oliver Ratzesberger resigned on Tuesday and that Chairman Victor Lund was now serving as interim president and CEO.