NEW YORK (AP) — Teradata Corp.’s stock increased Thursday after the company reported stronger-than-expected results for the second quarter thanks to growing demand for its data storage and analytics technology.
Teradata earned $103 million, or 60 cents per share, up 39 percent from $74 million, or 44 cents per share, a year earlier.
Revenue rose 24 percent to $581 million from $470 million.
Analysts, on average, had expected earnings of 53 cents per share on revenue of $550 million, according to FactSet. Teradata reported several special items, but the gains and expenses canceled each other out and adjusted earnings were also 60 cents per share.
Teradata helps financial, marketing and other companies store and analyze their data. Earlier this year, it bought data-analytics firm Aster Data Systems for at least $263 million. With the acquisition, Teradata is looking to expand sales in the growing market for analysis of “big data” — the expansive, interrelated information amassed in social networking, genomics and other fast-growing fields.
Teradata raised its full-year earnings guidance. It now expects earnings of $1.91 to $1.99 per share. Excluding special items such as gains from equity investments and stock options expenses, the company expects to earn $2.20 to $2.28 per share, the midpoint of which is above Wall Street’s expectations.
In May, the company had expected earnings of $1.76 to $1.86 per share and adjusted earnings of $2.13 to $2.23 per share.
Analysts are forecasting full-year earnings of $2.22 per share on revenue of $2.25 billion.
Shares of Teradata, which is based in Dayton, Ohio, rose $1.17, or more than 2 percent, to $55.52 in midday trading Thursday. The stock has traded in the 52-week range of $29.12 to $62.71.