) is set to report second quarter 2014 results on Aug 7. Last
quarter, it posted a 19.51% positive surprise. The company has
posted an average positive earnings surprise of 9.63% over the past
Let's see how things are shaping up for this announcement.
Growth Factors This Past Quarter
We believe that new customer wins and strengthening relationships
with large vendors will be the primary revenue drivers, going
forward. We also believe 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 from
EMC Corp. (
), NetApp and Fusion-IO are resulting in continued pricing
pressure that will likely limit margin expansion, going forward.
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.
Both the Most Accurate estimate and the Zacks Consensus
Estimate stand at 61 cents. Hence, the difference is of 0.00%.
Zacks Rank #4 (Sell):
We caution against stocks with Zacks #4 and #5 Ranks (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
- Super Micro Computer Inc. (
), Earnings ESP of +2.78% and Zacks Rank #1 (Strong Buy)
- Semiconductor Manufacturing International Corp. (
), Earnings ESP of +33.33% and Zacks Rank #2 (Buy)
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TERADATA CORP (TDC): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis
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