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Market Overview

Teradata Earnings Preview

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On Thursday, November 05, Teradata (NYSE: TDC) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Teradata reporting earnings of $0.3 per share on sales of $446.98 million. Teradata EPS in the same period a year ago totaled $0.32. Revenue was $459.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 6.25%. Sales would be down 2.62% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.22 0.23 0.16 0.40
EPS Actual 0.24 0.27 0.22 0.32
Revenue Estimate 436.89 M 452.65 M 474.60 M 485.55 M
Revenue Actual 457.00 M 434.00 M 494.00 M 459.00 M

Stock Performance

Shares of Teradata were trading at $19.14 as of November 03. Over the last 52-week period, shares are down 38.24%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Teradata is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings