TDC printed third quarter adj-EPS of $0.43 vs. $0.43, beating consensus by $0.10, aided by an increasing mix of recurring sales (+$0.02) and expense controls (+$0.05). Revenues were $460M (+1.3% Y/Y), versus consensus of $455M. The beat was driven by a higher recurring revenue (+6% Y/Y), which helped offset a lower number of on-premise deals that are recognized upfront under ASC 606. The company brought up its adj-EPS range to $2.11-$2.15 (vs. $1.92-$1.96) but trimmed its cloud annual recurring revenue (ARR) and was the key culprit of recent share pressure. While disappointing, deal slippage has been properly discounted into shares, with potential upward revisions ahead, given most transactions have been closed in fourth quarter and leads to today's upgrade. Our 12-month price target of $60 (from $55), 31.7x our 2022 EPS estimate of $1.89 (from $2.14), is grossly below other direct cloud-based data peers, and a culprit of its legacy heritage. We also boost our 2021 EPS estimate to $2.13 from $1.95.
|Covetrus Says it Gets Proposal From Clayton, Dubilie...|
|--April Unemployment Rate Fell in 13 US States, Payr...|
|Marvell Technology Likely to See Fiscal Q1 Beat, Opp...|
|Research Alert: CFRA Keeps Buy Opinion On Shares Of ...|
|Terreno Realty Acquires Newark Industrial Property f...|