TDC Earnings Prediction
The chart below shows how TDC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TDC sees a -1.17% change in stock price 10 days leading up to the earnings, and a -8.37% change 10 days following the report. On the earnings day itself, the stock moves by +1.44%. This data can give you a slight idea of what to expect for the next quarter's release.
TDC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
440.00M
0.46%
0.92%
Gross Margin
60.45%
2.23%
-0.54%
Operating Margin
12.73%
106.66%
-15.92%
Net Margin
7.27%
165.33%
-14.37%
EPS
0.33
175.00%
-13.16%
No Data Available
TDC Earnings Analysis
TERADATA CORPORATION Corporation (TDC.N) Earnings Conference Call
Positive
Cloud ARR Growth: Cloud ARR grew 26% year-over-year, with a solid cloud net expansion rate of 120%.
Cloud Revenue Growth: Total recurring revenue was driven by strong growth in cloud revenue, contributing to 85% of total revenue, up from 82% in the prior year.
Free Cash Flow Surge: Free cash flow nearly doubled year-over-year, reaching $69 million compared to $36 million in Q3 of 2023.
Earnings Per Share Increase: Non-GAAP diluted earnings per share increased to $0.69, exceeding the top end of guidance range.
Operating Margin Improvement: Operating margin improved over 800 basis points year-over-year, reaching 22.5%.
Negative
Revenue Stagnation Analysis: Despite a 3% year-over-year increase in recurring revenue to $372 million, total revenue remained flat year-over-year at $440 million, indicating stagnation in overall growth.
Cloud ARR Growth Projection: The company anticipates a deceleration in cloud ARR growth, projecting a range of 18% to 22% for the full year 2024, down from previous expectations.
Cloud ARR Decline: The ongoing migration of customers to the cloud is expected to impact total ARR negatively, as evidenced by a $50 million reduction in cloud ARR for 2024.
Customer Spending Shift: The company has seen a shift in customer spending patterns, with a noted decrease in large transformational deals, which could hinder future revenue growth.
Earnings Per Share Decline: There is a projected decline in non-GAAP diluted earnings per share, expected to be in the range of $0.40 to $0.44, reflecting potential challenges in profitability.
TDC FAQs
How does TDC typically perform around its earnings report dates?
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TDC Earning Call Sentiment
Teradata Corporation (TDC) Q3 2024 Earnings Call Transcript
TDC.N
-2.43%Positive
The earnings call summary presents a mixed picture. While there are positive aspects such as strong cloud ARR growth and improved margins, the revised guidance indicates a decline in total ARR and revenue. The Q&A section highlights potential risks, including changes in customer cloud migration behavior and a deceleration in the cloud net expansion rate. The market strategy is in early stages, posing execution risks. Additionally, the commitment to returning cash to shareholders is positive, but overall, the financial outlook and customer behavior concerns suggest a likely negative stock price reaction.
