Data and analytics software provider Teradata (NYSE:TDC) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
Teradata missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $436 million, down 5.6% year on year. Despite the top line miss, it was still a decent quarter for the company, with optimistic earnings guidance for the next quarter and an impressive beat of analysts’ EBITDA estimates.
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 4.6% year on year to $417.7 million, a reversal from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.
The majority of analysts covering the company have 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 Q3 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 16.1%, beating analysts’ expectations by 5.6%, and MicroStrategy reported a revenue decline of 10.3%, falling short of estimates by 4.4%. Commvault Systems traded up 18.4% following the results while MicroStrategy was down 1.1%.
Read our full analysis of Commvault Systems’s results here and MicroStrategy’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 6.4% on average over the last month. Teradata is up 10% during the same time and is heading into earnings with an average analyst price target of $33.70 (compared to the current share price of $33.23).
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