Teradata (TDC) reported third-quarter 2024 non-GAAP earnings of 69 cents per share, which beat the Zacks Consensus Estimate by 23.21%. The bottom line increased 64% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $440 million beat the Zacks Consensus Estimate by 5.02%. The figure was flat year over year on a reported basis and 2% on a constant-currency (cc) basis.Total annual recurring revenues (ARR) at the third-quarter end declined 3% year over year to $1. ...

Core Insights - Teradata reported $440 million in revenue for Q3 2024, a year-over-year increase of 0.5% and an EPS of $0.69 compared to $0.42 a year ago, exceeding Zacks Consensus Estimates for revenue and EPS [1] - The company achieved a revenue surprise of +5.02% and an EPS surprise of +23.21% compared to analyst expectations [1] Financial Performance Metrics - Annual recurring revenue (ARR) totaled $1.48 billion, matching the average estimate [3] - Public Cloud ARR was $570 million, below the average estimate of $598.02 million [3] - Revenue from perpetual software licenses and hardware was $7 million, exceeding the estimated $3.79 million [3] - Recurring revenue reached $372 million, surpassing the average estimate of $347.33 million, reflecting a year-over-year increase of +3.3% [3] - Revenue from consulting services was $61 million, below the estimated $70.18 million [3] - Gross profit from consulting services was $3 million, significantly lower than the average estimate of $7.84 million [3] - Gross profit from recurring revenue was $261 million, exceeding the average estimate of $243.66 million [3] Stock Performance - Teradata shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [4]

Company Performance - Teradata reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and up from $0.42 per share a year ago, representing an earnings surprise of 23.21% [1] - The company posted revenues of $440 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.02%, and slightly up from $438 million year-over-year [2] - Over the last four quarters, Teradata has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Teradata shares have declined approximately 23.6% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $431.6 million, and for the current fiscal year, it is $2.24 on revenues of $1.75 billion [7] - The estimate revisions trend for Teradata is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Computer-Storage Devices industry, to which Teradata belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses a company's financial strength and future outlook by analyzing projected and historical earnings, sales, and cash flow, targeting growth investors [3] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes, catering to momentum investors [4] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [5] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6][7] Stock to Watch: Teradata (TDC) - Teradata is a leading provider of connected multi-cloud data platforms, transitioning from an enterprise database company to an analytics platform provider, currently holding a 3 (Hold) Zacks Rank with a VGM Score of B and a Value Style Score of B due to a forward P/E ratio of 13.07 [10] - In the last 60 days, five analysts have raised their earnings estimates for Teradata for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.08 to $2.24 per share, and the company has an average earnings surprise of 11.8% [11]

Core Insights - Albert Anthony is a Croatian-American media personality and financial contributor, reaching over 1 million investors globally through his work on Seeking Alpha [1] - His content focuses on stock analysis, particularly in the financial and tech sectors, and emphasizes building a diversified dividend income portfolio [1] - In addition to his financial contributions, he has been involved in city council politics in Croatia and ran for Parliament in 2024 [1] Company and Industry Summary - Albert Anthony's analysis on Seeking Alpha averages over 25,000 views monthly, indicating a strong engagement with investors [1] - He has a background in information systems analysis, having worked at Charles Schwab, which adds credibility to his financial insights [1] - His educational qualifications include a B.A. from Drew University and certifications from prestigious institutions such as the London School of Business Administration and UVA Darden School of Business [1]

A month has gone by since the last earnings report for Teradata (TDC) . Shares have added about 10.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Teradata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Teradata Q2 Earnings Beat Estimates, Revenues Fall Y/Y T ...

Group 1: Company Developments - Teradata (TDC) has been announced as the official cloud analytics partner for the Los Angeles Clippers and their new arena, Intuit Dome, set to open on August 15, 2024 [1] - The Intuit Dome will feature advanced elements such as five basketball courts, an outdoor plaza, and the largest double-sided Halo Board ever installed in an arena, enhancing the live sports experience [2] - Teradata's Halo Loft Level will provide exclusive amenities, including private theater-style seating and advanced technology integrations, aiming to elevate fan engagement [2] Group 2: Financial Performance - In Q2 2024, Teradata reported a Cloud Annual Recurring Revenue (ARR) of $542 million, reflecting a 31% year-over-year increase and a 32% increase at constant currency [4] - Despite the growth in cloud solutions, Teradata experienced a 6% year-over-year decline in overall revenues for Q2 2024, totaling $436 million [9] - The consensus estimate for Q3 2024 revenues is projected at $427.46 million, indicating a 2.41% year-over-year decline [9] Group 3: Strategic Partnerships - Teradata's expanding partner base includes major players like Datarobot, Google Cloud, Microsoft, and Amazon, which has been a significant growth driver [5] - The integration of Teradata VantageCloud Lake with Google Cloud aims to enhance AI capabilities through ClearScape Analytics and Google's AI models [5] - Teradata has renewed its Strategic Collaboration Agreement with AWS to improve cloud migration and data analytics modernization using advanced generative AI [7] Group 4: Future Outlook - Non-GAAP earnings for Q3 2024 are expected to be between 54 and 58 cents per share, with the consensus mark for earnings at 54 cents, which has increased by 7 cents in the past 30 days [10] - Despite strong partnerships and cloud growth, challenges such as on-premises erosion and elongated deal cycles are impacting overall financial performance [8]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Teradata Corporation regarding a class action lawsuit due to alleged misleading statements and failure to disclose critical information during a specified class period [1][2]. Group 1: Allegations Against Teradata - The complaint alleges that Teradata's expanded business model led to longer transaction finalization times with customers, which was not disclosed [2]. - It is claimed that Teradata overstated its ability to close customer transactions within intended timeframes, impacting its outlook for 2023 Annual Recurring Revenue (ARR) growth [2]. - The company reportedly failed to close several customer transactions that were factored into its ARR expectations for 2023, leading to a likelihood of not meeting its public cloud ARR expectations [2]. Group 2: Class Action Details - The class period for the lawsuit is defined as February 13, 2023, to February 12, 2024, with a deadline for shareholders to register as lead plaintiffs set for August 13, 2024 [2][3]. - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates throughout the case lifecycle [3]. - Participation in the case does not incur any cost or obligation for the shareholders [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit, fraud, and illegal business practices [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [4].

Core Viewpoint - A securities class action lawsuit has been filed against Teradata Corporation for alleged violations of federal securities laws, including misleading statements about its business and financial performance, leading to significant investor losses [1]. Group 1: Allegations and Financial Performance - Teradata's fourth quarter and full year 2022 results indicated an expected increase in public cloud Annual Recurring Revenue (ARR) of 53% to 57% year-over-year, and total ARR growth of 6% to 8% year-over-year [3]. - On December 7, 2023, Teradata's CFO disclosed potential delays in a significant deal, which could result in the company falling to the low end of its previously provided cloud ARR guidance, causing a stock price drop of $2.89 per share, or 6.24% [4]. - The fourth quarter and full year 2023 results revealed that public cloud ARR increased by only 48%, and total ARR increased by just 6%, both falling short of earlier guidance, leading to a stock price decline of $10.57 per share, or 21.66% [5]. Group 2: Legal Proceedings - Investors affected by Teradata's alleged misconduct can seek to be appointed as lead plaintiffs in the class action lawsuit, with a deadline of August 13, 2024 [6]. - The class action complaint, titled Ostrander v. Teradata Corporation, is filed in the United States District Court for the Southern District of California [6].

Have you assessed how the international operations of Teradata (TDC) performed in the quarter ended June 2024? For this data management company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects. In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For inv ...