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Teradata pares outlook and shares skid aftermarket

NEW YORK (AP) -- Data management company Teradata lowered its annual forecasts Monday, saying its business outside the U.S. and Europe struggled during the third quarter.

Teradata said overall revenue rose 3 percent to $665 million. However, revenue from the Asia, Pacific, and Japan markets dropped 21 percent and revenue from the Middle East and Africa fell 19 percent, with both regions falling short of its expectations. Sales in both areas were hurt by unfavorable exchange in currency exchange rates. Excluding the U.S., sales in the Americas also didn't live up to Teradata's expectations.

Terada expects to report adjusted income of 69 to 70 cents per share, well below the average analyst estimate of 82 cents per share, according to FactSet. Analysts expected quarterly revenue of $700 million.

The company's stock dropped nearly 12 percent in late trading.

Teradata now forecasts adjusted income of $2.70 to $2.80 per share for the year and on revenue flat with its 2012 total of $2.67 billion.

The company had earlier called for income of $3.05 to $3.20 per share and said revenue would grow 6 to 10 percent, to $2.82 billion to $2.93 billion. In August the company said it would reach the low end of its net income guidance.

Analysts expect income of $3.05 per share and $2.78 billion in revenue.

The Atlanta company plans to report its quarterly results Oct. 31.

Teradata also said it authorized the repurchase of another $300 million in stock, bringing its total buyback authorization to $509 million.

Teradata Corp. shares fell 37 cents to $52.58 Monday and then slid $6.25 to $46.33 in after-hours trading. The stock is down about 15 percent in the year to date.