Data and analytics software provider Teradata (NYSE:TDC) will be announcing earnings results tomorrow after market hours. Here's what to look for.
Teradata met analysts' revenue expectations last quarter, reporting revenues of $465 million, down 2.3% year on year. It was a weak quarter for the company, with a miss of analysts' billings estimates and ARR (annual recurring revenue) 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 3.2% year on year to $447.3 million, a reversal from the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 per share.
Analysts covering the company have generally 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 Q2 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.1%, beating analysts' expectations by 2.1%, and Commvault Systems reported revenues up 13.4%, topping estimates by 4.2%. Confluent traded down 17.6% following the results while Commvault Systems was up 24.1%.
Read our full analysis of Confluent's results here and Commvault Systems's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Teradata is down 10.2% during the same time and is heading into earnings with an average analyst price target of $44 (compared to the current share price of $30.46).
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