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Teradata (TDC) Q3 Earnings: What's in the Cards This Time?
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Teradata Corp. (TDC - Free Report) is set to report third-quarter 2016 results on Oct 27. Last quarter, the company posted a 27.45% positive earnings surprise.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Teradata is well positioned to benefit from the robust growth in data warehousing market based on a strong product portfolio, customer wins and strategic partnerships. In line with its growth strategy, the company divested its Marketing Application business to focus more on its Data and Analytics business. The company sold the Marketing Applications business for $75 million. Among other things, Teradata is also bringing out a cloud version of its offerings to provide more flexible options to its clients.
Further, acquisitions have been a key growth catalyst for Teradata over the past few years. We believe that the company will continue to pursue strategic acquisitions that can be easily integrated into its existing scale of operations and will also enhance its competitive position. The company, at its last earnings call, had said in the near term, financials are likely be impacted by the delay in approval of large IT capital expenditures. This apart, increasing competition is an added concern.
For the third quarter, revenues are expected to be in the range of $550 million to $560 million. Non GAAP earnings per share are expected to be 60 cents per share.
Earnings Whispers
Our proven model does not conclusively show that Teradata is likely to beat earnings 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. That is not the case here, as you will see below.
Zacks ESP: Teradata currently has an Earnings ESP of 0.00% ESP as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents.
Zacks Rank: Teradata currently has a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Mercadolibre, Inc. (MELI - Free Report) with an Earnings ESP of +8.24% and a Zacks Rank #1
Apple Inc. (AAPL - Free Report) with an Earnings ESP of +1.21% and a Zacks Rank #2.
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Teradata (TDC) Q3 Earnings: What's in the Cards This Time?
Teradata Corp. (TDC - Free Report) is set to report third-quarter 2016 results on Oct 27. Last quarter, the company posted a 27.45% positive earnings surprise.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Teradata is well positioned to benefit from the robust growth in data warehousing market based on a strong product portfolio, customer wins and strategic partnerships. In line with its growth strategy, the company divested its Marketing Application business to focus more on its Data and Analytics business. The company sold the Marketing Applications business for $75 million. Among other things, Teradata is also bringing out a cloud version of its offerings to provide more flexible options to its clients.
Further, acquisitions have been a key growth catalyst for Teradata over the past few years. We believe that the company will continue to pursue strategic acquisitions that can be easily integrated into its existing scale of operations and will also enhance its competitive position. The company, at its last earnings call, had said in the near term, financials are likely be impacted by the delay in approval of large IT capital expenditures. This apart, increasing competition is an added concern.
For the third quarter, revenues are expected to be in the range of $550 million to $560 million. Non GAAP earnings per share are expected to be 60 cents per share.
Earnings Whispers
Our proven model does not conclusively show that Teradata is likely to beat earnings 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. That is not the case here, as you will see below.
Zacks ESP: Teradata currently has an Earnings ESP of 0.00% ESP as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents.
Zacks Rank: Teradata currently has a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
TERADATA CORP Price and EPS Surprise
TERADATA CORP Price and EPS Surprise | TERADATA CORP Quote
Stocks to Consider
Here are some stocks worth considering that, as per our model, havethe right combination of elements to post an earnings beat this quarter:
Amazon.com, Inc. (AMZN - Free Report) with an Earnings ESP of +10.47% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercadolibre, Inc. (MELI - Free Report) with an Earnings ESP of +8.24% and a Zacks Rank #1
Apple Inc. (AAPL - Free Report) with an Earnings ESP of +1.21% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand.Click to see them now>>