Teradata (TDC) Q3 Earnings and Revenues Top Estimates

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]