Yahoo Finance Teradata's (TDC) VantageCloud Lake Now Available on Azure
Teradata TDC recently announced the availability of VantageCloud Lake on Microsoft’s MSFT cloud computing service, Azure, providing customers with access to new markets and capabilities.
The integration with Microsoft Azure will enable customers to utilize Teradata's modern cloud-native architecture and analytics framework, ClearScape Analytics, to leverage harmonized data and dependable artificial intelligence (AI) for quicker innovation.
This move enhances Teradata's analytics capabilities by integrating Azure Machine Learning (ML), allowing customers to deploy and administer AI and ML, including generative AI, within their organizations.
The partnership will help both Teradata and Microsoft to meet the increasing demand for generative AI capabilities. Per a recent IDC survey, including CIOs, CDOs and CFOs, more than half of the executives expect pressure to use generative AI within the next year. Roughly, “95% expect to feel at least some pressure to implement and/or use generative AI.”
Teradata Corporation Price and Consensus
Teradata Corporation price-consensus-chart | Teradata Corporation Quote
Accelerating Growth Through Strategic Collaboration
Teradata shares have gained 63.3% in the year-to-date period, outperforming the Zacks Internet Software industry’s rally of 57.1% and the Zacks Computer & Technology sector’s return of 36.1%.
Teradata's outperformance has been driven by strategic collaborations, expanding analytics platform, and a strong growth outlook for the cloud market despite currency fluctuations.
The company has announced a collaboration with Dataiku that will enable users to prepare, train, and operationalize AI models at scale. The integration will combine Dataiku's intuitive user interface with Teradata's advanced analytics capabilities to help businesses accelerate their digital transformations.
Furthermore, Teradata and Fair Isaac FICO announced a partnership to develop integrated advanced analytic solutions for real-time payments fraud, insurance claims and supply chain optimization.
The solution provided by FICO will reduce fraud in real-time, improve decision-making, and increase the efficacy of customer operations, resulting in lower costs and enhanced customer service.
Teradata is expanding its portfolio and market presence as a result of its differentiated analytics platform, which is in high demand as customers expand their cloud environments, demonstrating its effectiveness and value.
Promising Outlook
Teradata anticipates growth in total Annual Recurring Revenue between the range of 6% and 8% year over year. The growth in total revenues is expected to be in the range of 1% to 4% year over year.
For full-year 2023, the company updated its guidance for non-GAAP earnings from $1.90-$2.06 per share to $1.92-$2.04 per share.
The Zacks Consensus Estimate for 2023 revenues is pegged at $1.84 billion, implying a 2.6% increase from 2022. The consensus mark for 2023 earnings stands at $1.96 per share, unchanged over the past 30 days and indicating year-over-year growth of 19.5%.
Further, the company anticipates operating cash flow to range between $340 million and $380 million.
For second-quarter 2023, non-GAAP earnings are expected to be between 43 cents and 47 cents per share. The Zacks Consensus Estimate for second-quarter earnings is pegged at 45 cents, unchanged over the past 30 days and indicating year-over-year growth of 36.4%.
Zacks Rank & Another Stock to Consider
Currently, Teradata carries a Zacks Rank #2 (Buy). Baidu BIDU is a stock worth considering in the broader technology as it sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu shares have gained 30.1% in the year-to-date period. The long-term earnings growth rate for BIDU is currently projected at 48.08%.
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