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Teradata (TDC) Reports Q3 Earnings: What Key Metrics Have to Say

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Teradata (TDC - Free Report) reported $440 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.5%. EPS of $0.69 for the same period compares to $0.42 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $418.97 million, representing a surprise of +5.02%. The company delivered an EPS surprise of +23.21%, with the consensus EPS estimate being $0.56.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Teradata performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Annual recurring revenue (ARR) - Total: $1.48 billion compared to the $1.48 billion average estimate based on three analysts.
  • Annual recurring revenue (ARR) - Public Cloud: $570 million compared to the $598.02 million average estimate based on three analysts.
  • Revenue- Perpetual software licenses and hardware: $7 million versus $3.79 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
  • Revenue- Recurring: $372 million versus the three-analyst average estimate of $347.33 million. The reported number represents a year-over-year change of +3.3%.
  • Revenue- Consulting services: $61 million versus $70.18 million estimated by three analysts on average.
  • Gross profit- Consulting services: $3 million compared to the $7.84 million average estimate based on two analysts.
  • Gross profit- Recurring: $261 million compared to the $243.66 million average estimate based on two analysts.
View all Key Company Metrics for Teradata here>>>

Shares of Teradata have returned +9.5% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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