We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Teradata (TDC) This Earnings Season?
Read MoreHide Full Article
Teradata Corp. (TDC - Free Report) is slated to report second-quarter 2017 results on Jul 27 before the opening bell. Last quarter, the company posted a positive earnings surprise of 5.26%. Additionally, it has an average positive earnings surprise of 14.96% in the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Teradata is well positioned in Enterprise Data Warehousing (EDW) solutions market, including enterprise analytic technologies and services worldwide. Further, the company offers a robust product portfolio.
We expect the company’s ongoing transition – especially with regards to new subscription pricing programs – to be long-term growth drivers but will continue to impact results in the near term.
Also, we believe that restructuring related costs and a sluggish spending environment in the domestic market will continue to weigh on the near term performance. Stiffening competition is an added concern.
Teradata has underperformed the industry in the last year. The company’s shares have decreased 2.4% compared with the industry’s gain of 48.1% during the period.
The company's management anticipates second-quarter 2017 revenue to be in the $510–$530 million range. Non-GAAP earnings per share are expected to be in the 25–30 cents range.
Earnings Whispers
Our proven model does not conclusively show that Teradata is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Teradata has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teradata carries a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Kemet Corp. (KEM - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1.
Lam Research Corp. (LRCX - Free Report) with an Earnings ESP of +1.33% and a Zacks Rank #1.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artifical intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in Store for Teradata (TDC) This Earnings Season?
Teradata Corp. (TDC - Free Report) is slated to report second-quarter 2017 results on Jul 27 before the opening bell. Last quarter, the company posted a positive earnings surprise of 5.26%. Additionally, it has an average positive earnings surprise of 14.96% in the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Teradata is well positioned in Enterprise Data Warehousing (EDW) solutions market, including enterprise analytic technologies and services worldwide. Further, the company offers a robust product portfolio.
We expect the company’s ongoing transition – especially with regards to new subscription pricing programs – to be long-term growth drivers but will continue to impact results in the near term.
Also, we believe that restructuring related costs and a sluggish spending environment in the domestic market will continue to weigh on the near term performance. Stiffening competition is an added concern.
Teradata has underperformed the industry in the last year. The company’s shares have decreased 2.4% compared with the industry’s gain of 48.1% during the period.
The company's management anticipates second-quarter 2017 revenue to be in the $510–$530 million range. Non-GAAP earnings per share are expected to be in the 25–30 cents range.
Earnings Whispers
Our proven model does not conclusively show that Teradata is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Teradata has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teradata carries a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Teradata Corporation Price and EPS Surprise
Teradata Corporation Price and EPS Surprise | Teradata Corporation Quote
Stocks to Consider
Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Cypress Semiconductor Corp. with an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank Stocks here.
Kemet Corp. (KEM - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1.
Lam Research Corp. (LRCX - Free Report) with an Earnings ESP of +1.33% and a Zacks Rank #1.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artifical intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>