Will These Numbers from Teradata Be Good Enough for You?

Teradata (NYSE: TDC  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Teradata's revenues will grow 7.7% and EPS will increase 12.1%.

The average estimate for revenue is $724.6 million. On the bottom line, the average EPS estimate is $0.74.

Revenue details
Last quarter, Teradata reported revenue of $647.0 million. GAAP reported sales were 7.5% higher than the prior-year quarter's $602.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.69. GAAP EPS of $0.60 for Q3 were 18% higher than the prior-year quarter's $0.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 55.8%, 130 basis points better than the prior-year quarter. Operating margin was 22.1%, 180 basis points better than the prior-year quarter. Net margin was 16.1%, 160 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.65 billion. The average EPS estimate is $2.80.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 658 members out of 686 rating the stock outperform, and 28 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give Teradata a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teradata is outperform, with an average price target of $82.94.

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