Will Teradata (TDC) Surprise This Earnings Season? - Analyst Blog


Teradata Corporation ( TDC ) 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 four quarters.  

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. ( EMC ), NetApp  and Fusion-IO are resulting in continued pricing pressure that will likely limit margin expansion, going forward.

Earnings Whispers?

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 Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP:   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. ( SMCI ), Earnings ESP of +2.78% and Zacks Rank #1 (Strong Buy)
  • Semiconductor Manufacturing International Corp. ( SMI ), 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 Report

SEMICON MFG-ADR (SMI): Free Stock Analysis Report

SUPER MICRO COM (SMCI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: TDC , EMC , SMI , SMCI



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