Data and analytics software provider Teradata (NYSE:TDC) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter Teradata reported revenues of $452 million, down 4.84% year on year, beating analyst revenue expectations by 3.76%. It was a weak quarter for the company, with declining revenue and gross margin.
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 decline 4.64% year on year to $473 million, a further deceleration on the 1.02% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 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, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by 0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.
There is still much uncertainty in the markets. The Federal Reserve's hawkish stance on rates, meant to tame inflation, remains a key market narrative. There is an added wrinkle now with troubles in the banking sector, triggered by Silicon Valley Bank's fairly sudden and surprising collapse. Given these, the question is whether higher rates (which dampen economic activity) and potentially less lending from the overall banking sector will trigger a recession. While some tech stocks have recovered year-to-date, most are still well off their 52-week highs. Teradata is up over the last month and is heading into the earnings with analyst price target of $50.9, compared to share price of $41.05.
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The author has no position in any of the stocks mentioned.