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Fingers on the Pulse of Business

05/05/2011 2:27 pm EST


Louis Navellier

Editor, Growth Investor, Breakthrough Stocks & Accelerated Profits

Data-warehousing specialist Teradata helps companies discover and meet their customers’ needs, writes Louis Navellier in Blue Chip Growth .

Many of our biggest winners of the last year have been in tech companies. Citrix Systems (CTXS) is up 71%, Cognizant Technology Solutions (CTSH) is up 95%, and our new buy from last month, ARM Holdings (ARMH), is already up 18%.

Our latest pick in the space is Teradata (TDC), which designs and implements data warehousing systems.

Teradata is a leading global provider of business data management and consulting. If you've ever run a business, you know how important it is to have access to good data about your customers and your operations. When you have that information, you can see where you're spending too much or not enough, and better serve your clients, because you know who they are and what they want.

It's no wonder that the company has a large client list that includes businesses from virtually all sectors, including entertainment, financial services, government, and telecommunications.

Teradata has a booming global presence and operates in North America, Latin America, Europe, the Middle East, Africa, the Asia-Pacific region, and Japan. Approximately half of the company's sales come from outside the US, and the company is working on expanding its global markets even further.

In the fourth quarter, Teradata's sales rose 10%, to $548 million. Earnings rose 4% to $85 million, or 50 cents per share. Excluding extraordinary items, the company's operating earnings were actually 53 cents per share.

The analyst community expected operating earnings of 50 cents per share and sales of $532.3 million, so Teradata posted a 6% earnings surprise and a 3% sales surprise. Looking forward, the company is forecasting 2011 sales growth of 12% to 14%.

For the first-quarter results due today, the analyst community is expecting 13.9% sales growth and 17.9% earnings growth. [Editor—On Thursday, May 5, the company reported sales growth of 18%. Earnings growth fell by 3% due to acquisitions and the impact of sales of lower-margin products.]

Given global businesses' increased dependence on secure, effective technology solutions, Teradata's versatile business strategy and services will continue to prosper and gain more business around the world.

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