Exploring Teradata's Earnings Expectations

Teradata (NYSE:TDC) is set to give its latest quarterly earnings report on Tuesday, 2025-05-06. Here's what investors need to know before the announcement.

Analysts estimate that Teradata will report an earnings per share (EPS) of $0.57.

The announcement from Teradata is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

Last quarter the company beat EPS by $0.10, which was followed by a 20.3% drop in the share price the next day.

Here's a look at Teradata's past performance and the resulting price change:

Quarter Q4 2024 Q3 2024 Q2 2024 Q1 2024
EPS Estimate 0.43 0.56 0.48 0.55
EPS Actual 0.53 0.69 0.64 0.57
Price Change % -20.0% -15.0% -14.000000000000002% -14.000000000000002%

Stock Performance

Shares of Teradata were trading at $22.07 as of May 02. Over the last 52-week period, shares are down 31.82%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Teradata

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Teradata.

The consensus rating for Teradata is Underperform, based on 5 analyst ratings. With an average one-year price target of $29.0, there's a potential 31.4% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Progress Software, Rapid7 and Tenable Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Buy trajectory for Progress Software, with an average 1-year price target of $76.0, suggesting a potential 244.36% upside.
  • Analysts currently favor an Neutral trajectory for Rapid7, with an average 1-year price target of $36.59, suggesting a potential 65.79% upside.
  • Analysts currently favor an Neutral trajectory for Tenable Holdings, with an average 1-year price target of $39.9, suggesting a potential 80.79% upside.

Key Findings: Peer Analysis Summary

In the peer analysis summary, key metrics for Progress Software, Rapid7 and Tenable Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Teradata Underperform -10.50% $243M 19.38%
Progress Software Buy 28.88% $191.78M 2.51%
Rapid7 Neutral 5.36% $149.99M -25.97%
Tenable Holdings Neutral 1.44% $184.29M -5.86%

Key Takeaway:

Teradata ranks at the bottom for Revenue Growth with a negative percentage, while its peers show positive growth rates. In terms of Gross Profit, Teradata's figure is the highest among its peers. However, Teradata's Return on Equity is the lowest compared to its peers. Overall, Teradata's performance is mixed when compared to its peers in these key financial metrics.

About Teradata

Teradata Corp focused on helping organizations improve business performance, enrich customer experiences, and integrate data across the enterprise. The company's platform provides companies with Harmonized Data: Trusted AI: Teradata VantageCloud: Teradata VantageCore: ClearScape Analytics: and Query Grid. The company generates majority of revenue from the United States.

Teradata: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Negative Revenue Trend: Examining Teradata's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -10.5% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Teradata's net margin is impressive, surpassing industry averages. With a net margin of 6.11%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Teradata's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.38% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Teradata's ROA excels beyond industry benchmarks, reaching 1.49%. This signifies efficient management of assets and strong financial health.

Debt Management: Teradata's debt-to-equity ratio stands notably higher than the industry average, reaching 4.33. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Teradata visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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