By Connor Hart

Shares of Teradata sank after the company issued guidance for the current quarter and year that missed Wall Street's expectations.

The stock was trading 19% lower, at $25.12, in afternoon trading Wednesday, marking a slight rebound from a four-year low of $22.73 earlier in the day. Shares, on pace for their largest percent decrease in a year, are down 35% in the past year.

The San Diego company, which offers cloud analytics and data platforms for artificial intelligence, on Tuesday guided for adjusted per-share earnings of 55 cents to 59 cents in the current quarter, missing the 64 cents that analysts expected. It forecast revenue to fall 6% to 8% from last year, compared with analyst views for revenue of $446.9 million, or a 3.9% decline.

In 2025, Teradata expects adjusted per-share earnings of $2.15 to $2.25, below the $2.46 that analysts were looking for. Teradata expects revenue to decline 4% to 6% from 2024, compared with analyst models for revenue of $1.69 billion, representing a 3.3% drop.

Chief Executive Steve McMillan said 2024 was a challenging year, during which it restructured its go-to-market organization and implemented cost-saving actions. The company also reoriented its focus towards AI.

"We are firmly focused on returning the company to growth in 2025, and execution is job number one," McMillan said.

In the quarter ended Dec. 31, Teradata posted a profit of $25 million, or 26 cents a share, compared with a loss of $7 million, or 7 cents a share, a year earlier.

Adjusted per-share earnings came in at 53 cents, ahead of the 43 cents that analysts polled by FactSet expected.

Total revenue fell to $409 million from $457 million. Analysts were looking for $414.5 million, according to FactSet.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 12, 2025 15:14 ET (20:14 GMT)

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