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Teradata Corp(TDC-N)
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Teradata (TDC) Reports Earnings Tomorrow. What To Expect

StockStory - Sun Feb 11, 1:01AM CST

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Data and analytics software provider Teradata (NYSE:TDC) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Teradata reported revenues of $438 million, up 5% year on year, in line with analyst expectations. It was a mixed quarter for the company. Although Teradata's EPS guidance for next quarter beat analysts' expectations, its adjusted operating income and free cash flow missed Wall Street's estimates.

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 0.9% year on year to $456.3 million, improving on the 4.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.

Teradata Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days.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 Q4 earnings results, giving us a hint what we can expect. Confluent delivered top-line growth of 26.4% year on year, beating analyst estimates by 3.7% and Palantir reported revenues up 19.6% year on year, exceeding estimates by 0.9%. Confluent traded up 13.7% on the results, and Palantir was up 11.7%.

Read our full analysis of Confluent's results here and Palantir's results here.

There has been positive sentiment among investors in the data and analytics software segment, with the stocks up on average 8.2% over the last month. Teradata is up 3.6% during the same time, and is heading into the earnings with analyst price target of $62, compared to share price of $49.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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