Teradata (TDC) Reports Earnings Tomorrow: What To Expect

Data and analytics software provider Teradata (NYSE:TDC) will be reporting results tomorrow after market hours. Here's what investors should know.

Teradata met analysts' revenue expectations last quarter, reporting revenues of $457 million, up 1.1% year on year. It was a strong quarter for the company, with a solid beat of analysts' billings estimates and a meaningful improvement in its gross margin.

Is Teradata a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Teradata's revenue to decline 2.5% year on year to $463.9 million, improving from the 4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradata has missed Wall Street's revenue estimates twice over the last two years.

Looking at Teradata's peers in the data and analytics software segment, only Commvault Systems has reported results so far. It beat analysts' revenue estimates by 5.1%, delivering year-on-year sales growth of 9.7%. The stock traded up 3.2% on the results.

Read our full analysis of Commvault Systems's earnings results here.

Inflation fears have put pressure on growth stocks, and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. Teradata's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $53 (compared to the current share price of $37.9).

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