Teradata (TDC) Stock Jumps 26.6%: Will It Continue to Soar?

Zacks Equity Research
·2-min read

Teradata (TDC) shares ended the last trading session 26.6% higher at $50.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.6% loss over the past four weeks.

The upswing in share price came after Teradata presented preliminary first-quarter 2021 earnings result that was well above its previously provided guidance. Adjusted earnings, initially projected by the company to be between 38 cents and 40 cents per share are now expected between 67 cents and 69 cents per share.

Public-cloud ARR growth, the annual value at a point in time of all contracts related to Teradata's public cloud implementations, is now expected to be between $16-18 million, as opposed to the $10-15 million range given earlier. Teredata continues to benefit from its ongoing growth in cloud computing.

Price and Consensus

Price Consensus Chart for TDC
Price Consensus Chart for TDC

This data management company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +44.4%. Revenues are expected to be $441.8 million, up 1.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Teradata, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TDC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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