Teradata (TDC) Q3 Earnings Report Preview: What To Look For
Data and analytics software provider Teradata (NYSE:TDC) will be announcing earnings results today. Here's what investors should know.
Last quarter Teradata reported revenues of $462 million, up 7.4% year on year, beating analyst revenue expectations by 3.8%. It was a decent quarter for the company, with revenue and ARR (annual recurring revenue) surpassing Wall Street's expectations. Next quarter's non-GAAP EPS guidance was in line, and the company largely maintained its full year guidance. On the other hand, its deteriorating gross margin was a negative.
Is Teradata buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Teradata's revenue to grow 4.6% year on year to $436.4 million, improving on the 9.3% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at Teradata's peers in the data and analytics software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Confluent delivered top-line growth of 31.9% year on year, beating analyst estimates by 2.6% and DigitalOcean reported revenues up 16.4% year on year, exceeding estimates by 2.1%. Confluent traded down 19.9% on the results, DigitalOcean was up 14.3%.
Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022 and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Teradata is down 2.7% during the same time, and is heading into the earnings with analyst price target of $62.5, compared to share price of $44.5.
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The author has no position in any of the stocks mentioned.