) is set to report first-quarter 2014 results on May 8. Last
quarter, the company posted a 6.3% positive surprise. The company
has posted an average negative earnings surprise of 2.0% over the
past four quarters. Year-to-date, Teradata's share price has
decreased 0.9% compared with an increase of 2.0% for the S&P
Let's see how things are shaping up:
Growth Factors This Past Quarter
We believe that customer wins and strengthening relationships
with large vendors will be the primary revenue drivers going
forward. We also believe that Teradata will continue to benefit
from its international expansion, improved traction from sales
force expansion, new products and alliances, market share gains
and a growing database analytics market.
However, increased investment in sales, a sluggish spending
environment in the domestic market and increasing competition
) are resulting in continued pricing pressure that will likely
limit margin expansion.
Tight IT spending is also expected to hurt top-line growth in the
Our proven model does not conclusively show that Teradata is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here, as you will see below.
: Earnings ESP for Teradata stands at 0.00%. This is because both
the Most Accurate estimate and the Zacks Consensus Estimate are
pegged at 41 cents.
: Teradata has a Zacks Rank #3 (Hold) which when combined with
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
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