Cloud analytics platform Teradata (NYSE: TDC) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
Teradata beat analysts’ revenue expectations last quarter, reporting revenues of $410 million, flat year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ billings estimates.
Is Teradata a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Teradata’s revenue to decline 5.1% year on year, in line with the 5.5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Teradata has missed Wall Street’s revenue estimates multiple 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. Palantir Technologies delivered year-on-year revenue growth of 95.9%, beating analysts’ expectations by 5.9%, and DigitalOcean reported revenues up 39.9%, topping estimates by 4.8%. Palantir Technologies traded down 1.7% following the results.
Read our full analysis of Palantir Technologies’s results here and DigitalOcean’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 3.5% on average over the last month. Teradata is up 12.2% during the same time and is heading into earnings with an average analyst price target of $34 (compared to the current share price of $33.55).
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