Data and analytics software provider Teradata (NYSE:TDC) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Teradata beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $440 million, flat year on year. It was a satisfactory quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations.
Is Teradata a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Teradata’s revenue to decline 9.1% year on year to $415.3 million, a reversal from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradata has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Teradata’s peers in the data and analytics software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 6.9%, and Palantir reported revenues up 36%, topping estimates by 6.8%. Commvault Systems traded down 7.5% following the results while Palantir was up 23.7%.
Read our full analysis of Commvault Systems’s results here and Palantir’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 10.6% on average over the last month. Teradata is up 2.7% during the same time and is heading into earnings with an average analyst price target of $33 (compared to the current share price of $31.15).
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