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What To Expect From Teradata’s (TDC) Q2 Earnings

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

TDC Cover Image

Cloud analytics platform Teradata (NYSE: TDC) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.

Teradata beat analysts’ revenue expectations last quarter, reporting revenues of $444 million, up 6.2% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.

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 2.9% year on year, improving from the 6.4% decrease it recorded in the same quarter last year.

Teradata Total Revenue

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 Q2 results, giving us a hint as to what we can expect. Strategy delivered year-on-year revenue growth of 6.9%, meeting analysts’ expectations, and Commvault reported revenues up 11.4%, topping estimates by 1.2%. Strategy traded down 4.3% following the results while Commvault was also down 19.5%.

Read our full analysis of Strategy’s results here and Commvault’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 2.7% on average over the last month. Teradata is down 15% during the same time and is heading into earnings with an average analyst price target of $35.63 (compared to the current share price of $30.99).

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