Higher spending lifts Teradata’s outlook

Article Excerpt

TERADATA CORP. $30 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.3 million; Market cap: $5.0 billion; Price-to-sales ratio: 2.8; No dividends paid; WSSF Rating: Average) makes computers and software that capture and store large amounts of a business’s data. Analyzing this information helps its clients make better decisions. In the three months ended June 30, 2010, Teradata earned $0.44 a share, up 22.2% from $0.36 a year earlier. Revenue rose 11.6%, to $470 million from $421 million. Teradata is adding to its sales force and spending more on research. That will weigh on its short-term earnings, but should fuel its long-term growth. Teradata is a buy. buy…