TDC: Teradata Corp., expanding commercial intelligence
Posted by: in Products and ServicesFiled under: Products and services, Management, Marketing and advertising
I’ve recently taken a quick look at Teradata Corp. (NYSE: TDC). Teradata was a well-received spin-off of NCR Corp. (NYSE: NCR). Teradata is a commercial data warehousing, processing, and analyzing specialist for major business enterprises. The company focuses on the development of retail market intelligence based on consumer habits and trending, among other analytical data specialties.
It was recently announced by Teradata that a 550 store, an Italian supermarket chain, is expanding its Teradata system. Streetinvesting.com reported that the Italian firm wishes to more fully utilize its Teradata based information management systems across a broader range of its operations. Streetinvesting.com said, “Teradata CRM provides a detailed understanding of customer buy behaviors and preferences, and enables personalized offers to customers. Teradata’s scalability supports growing businesses with increasingly complex business demands driven by robust growth stipulations and the need for pervasive business intelligence.”
In my view, Teradata has been performing adequately as a company, reporting $200 million net income for 2007 on sales of $1.7 billion. Currently, the company’s share performance is lagging noticeably within its peer group, even though its income statement is showing four consecutive years of gross income increases. Operating expenses do appear to be weighing heavily on the company’s performance, and taxes are certainly an issue.
At the time of this research, Teradata’s shares are trading very near their 52-week low, prepared to open Monday at $21.77 against a 52-week high of $30.08. Analyst sentiment appears to be confident but reserved in regard to this stock. The consensus is calling it a purchase.
Gary Sattler is a freelance blogger with no stock picking credentials. He does not knowingly hold interest in the companies mentioned in this post.
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