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Teradata (TDC) to Report Q4 Earnings: What's in the Cards?

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Teradata (TDC - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 7.

For the fourth quarter, the company expects non-GAAP earnings in the band of 25-29 cents per share.

The Zacks Consensus Estimate for earnings is pegged at 30 cents per share, indicating a decline of 21.1% from the year-ago reported figure. Further, the figure has been unchanged over the past 30 days.

Teradata beat on earnings in all the trailing four quarters, with the average being 42.4%.

Teradata Corporation Price and EPS Surprise

Teradata Corporation Price and EPS Surprise

Teradata Corporation price-eps-surprise | Teradata Corporation Quote

Factors to Consider

Teradata has been consistently benefiting from the cloud business. A robust pipeline and larger cloud deals are expected to have continued aiding its fourth-quarter performance.

Further, solid momentum of the company’s enterprise accounts across all regions is likely to have remained a tailwind.

Strength in the Vantage platform is expected to have driven the growth of Teradata’s customer base in the fourth quarter.

During the quarter, the company announced that Target has migrated its Demand Chain Management architecture to Teradata Vantage in the cloud. This is likely to have supported the quarterly performance.

In addition, growing efforts to strengthen its technologies are anticipated to have been a positive in the to-be-reported quarter.

Also, increasing investments for faster cloud execution and cloud go-to-market global activities are likely to have remained other positives in the quarter under review.

All these endeavors are expected to have contributed well to top-line growth in the fourth quarter.

Yet, sluggishness in Perpetual software license and Consulting revenues is expected to have remained a concern in the to-be-reported quarter.

Further, intensifying competition in the analytic data solutions market is anticipated to have been a headwind for the company.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Teradata this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.

Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.

Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.31% from the prior-year reported figure.

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