Back to top

Image: Bigstock

Teradata (TDC) International Revenue Performance Explored

Read MoreHide Full Article

Have you evaluated the performance of Teradata's (TDC - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this data management company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

In our recent assessment of TDC's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter stood at $465 million, declining 2.3% year over year. Now, let's delve into TDC's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Look into TDC's International Revenue Streams

Of the total revenue, $63 million came from Asia Pacific and Japan during the last fiscal quarter, accounting for 13.6%. This represented a surprise of -5.84% as analysts had expected the region to contribute $66.91 million to the total revenue. In comparison, the region contributed $65 million, or 14.2%, and $67 million, or 14.1%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe, Middle East and Africa contributed $125 million in revenue, making up 26.9% of the total revenue. When compared to the consensus estimate of $118.26 million, this meant a surprise of +5.7%. Looking back, Europe, Middle East and Africa contributed $127 million, or 27.8%, in the previous quarter, and $117 million, or 24.6%, in the same quarter of the previous year.

International Market Revenue Projections

Wall Street analysts expect Teradata to report a total revenue of $454.17 million in the current fiscal quarter, which suggests a decline of 1.7% from the prior-year quarter. Revenue shares from Asia Pacific and Japan and Europe, Middle East and Africa are predicted to be 14.8% and 26.2%, corresponding to amounts of $67.24 million and $119.18 million, respectively.

Analysts expect the company to report a total annual revenue of $1.82 billion for the full year, marking a decrease of 1% compared to last year. The expected revenue contributions from Asia Pacific and Japan and Europe, Middle East and Africa are projected to be 14.8% ($267.87 million) and 26.6% ($482.59 million) of the total revenue, in that order.

Closing Remarks

Teradata's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At present, Teradata holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Teradata's Recent Stock Price Performance

Over the preceding four weeks, the stock's value has diminished by 13.4%, against a downturn of 0.3% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Teradata among its entities, has appreciated by 0.7%. Over the past three months, the company's shares have seen a decline of 15.8% versus the S&P 500's 4.1% increase. The sector overall has witnessed an increase of 3.3% over the same period.

Published in