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What's in Store for Teradata (TDC) This Earnings Season?
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Teradata Corporation (TDC - Free Report) is set to report first-quarter 2017 results on Apr 27. Last quarter, the company posted an 11.76% positive earnings surprise, with an average positive earnings surprise of 18.49%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Teradata is well positioned in the data warehousing and enterprise analytics market. The company offers a strong product portfolio. Moreover, partnerships and acquisitions have been the key growth drivers for Teradata.
Furthermore, Teradata is bringing out a cloud version of its offerings to provide more flexible options to its clients. In the long run, the company is expected to benefit from its transition to a subscription-based revenue model.
However, restructuring related costs and a sluggish spending environment in the domestic market will continue to weigh on its financials. This apart, increasing competition from the likes of Oracle (ORCL - Free Report) , IBM Corporation, Microsoft, Dell and others is a concern.
We note that Teradata has underperformed the Zacks categorized Computer Storage Devices industry in the last one year. The company’s shares have increased 19.34% compared with the industry’s gain of 64.67% during the period.
Revenues for the first quarter of 2017 are expected to be approximately $500 million. Non-GAAP earnings per share are expected in a range of $0.25–$0.30.
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: Earnings ESP for Teradata is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teradata has 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.
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:
Seagate Technology plc (STX - Free Report) has an Earnings ESP of +3.77% and a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
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What's in Store for Teradata (TDC) This Earnings Season?
Teradata Corporation (TDC - Free Report) is set to report first-quarter 2017 results on Apr 27. Last quarter, the company posted an 11.76% positive earnings surprise, with an average positive earnings surprise of 18.49%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Teradata is well positioned in the data warehousing and enterprise analytics market. The company offers a strong product portfolio. Moreover, partnerships and acquisitions have been the key growth drivers for Teradata.
Furthermore, Teradata is bringing out a cloud version of its offerings to provide more flexible options to its clients. In the long run, the company is expected to benefit from its transition to a subscription-based revenue model.
However, restructuring related costs and a sluggish spending environment in the domestic market will continue to weigh on its financials. This apart, increasing competition from the likes of Oracle (ORCL - Free Report) , IBM Corporation, Microsoft, Dell and others is a concern.
Teradata Corporation Price and EPS Surprise
Teradata Corporation Price and EPS Surprise | Teradata Corporation Quote
We note that Teradata has underperformed the Zacks categorized Computer Storage Devices industry in the last one year. The company’s shares have increased 19.34% compared with the industry’s gain of 64.67% during the period.
Revenues for the first quarter of 2017 are expected to be approximately $500 million. Non-GAAP earnings per share are expected in a range of $0.25–$0.30.
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: Earnings ESP for Teradata is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teradata has 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.
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:
Teradyne, Inc. (TER - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Seagate Technology plc (STX - Free Report) has an Earnings ESP of +3.77% and a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>