Cloud analytics platform Teradata (NYSE: TDC) will be reporting results this Tuesday after the bell. Here’s what you need to know.
Teradata beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $408 million, down 6.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Is Teradata a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Teradata’s revenue to decline 7.7% year on year to $406.1 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.54 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 four times over the last two years.
Looking at Teradata’s peers in the data and analytics software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 19.3%, beating analysts’ expectations by 2.1%, and Strategy reported revenues up 10.9%, topping estimates by 9.1%. Confluent traded up 7.8% following the results while Strategy was also up 6%.
Read our full analysis of Confluent’s results here and Strategy’s results here.
Investors in the data and analytics software segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Teradata is down 9.4% during the same time and is heading into earnings with an average analyst price target of $24.44 (compared to the current share price of $20.85).
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