Teradata (TDC) to Report Q2 Earnings: What's in the Cards?

Teradata TDC is scheduled to report second-quarter 2022 results on Aug 4.

For the second quarter, Teradata expects non-GAAP earnings in the band of 26-30 cents per share.

The Zacks Consensus Estimate for earnings stands at 39 cents per share, indicating a decline of 47.3% from the year-ago quarter’s reported figure. The figure has been unchanged over the past 30 days.

Teradata beat on earnings in all the trailing four quarters, the average being 49.5%.

Teradata Corporation Price and EPS Surprise

Teradata Corporation Price and EPS Surprise

Teradata Corporation price-eps-surprise | Teradata Corporation Quote

Factors to Consider

Teradata’s second-quarter performance is likely to have benefited from the cloud business. Increasing customer adoption of its cloud offerings might have contributed well to top-line growth.

Growing efforts to strengthen connected multi-cloud data platform for enterprise analytics are expected to have remained positive in the to-be-reported quarter.

TDC is consistently working toward releasing new analytics capabilities to gain customer momentum. This is expected to have aided the performance of the quarter under review.

Teradata’s second-quarter performance is likely to have been driven by a continuous improvement in recurring and, perpetual software license & hardware revenues.

TDC is witnessing consistent customer migration to its Vantage platform. This might have constantly driven its public cloud annual recurring revenues.

During the second quarter, TDC partnered with the leading IT distributor Ingram Micro to help customers in Singapore implement Teradata Vantage in the cloud to meet demand for data-driven business intelligence. This too might have been a boon.

Apart from these, growing momentum in the Americas region is anticipated to get reflected in the upcoming quarterly results.

However, sluggishness in consulting services revenues and weak momentum in the Asia-Pacific and Japan regions are expected to have remained a concern in the quarter under discussion.

Teradata ceased its business operations in Russia due to the Russian invasion of Ukraine. This is likely to have affected its business in the Europe, the Middle East & Africa (EMEA) region in the quarter to be reported.

Intensifying competition in the analytic data solutions market is also expected to have been a headwind to Teradata in the second quarter.

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.

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

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Amcor AMCR has an Earnings ESP of +1.39% and a Zacks Rank #3 at present.

Amcor is set to report fourth-quarter fiscal 2022 results on Aug 16. The Zacks Consensus Estimate for AMCR’s earnings is pegged at 24 cents per share, suggesting an increase of 4.35% from the prior-year fiscal period’s reported figure.

Box BOX has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.

Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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