How did TDC's Q3 earnings surprise impact its stock?

Teradata's (TDC) Q3 earnings surprise had a positive impact on its stock, as indicated by the company's updated earnings guidance for the quarter and the broader market reaction.

1. **Earnings Surprise Overview**: Teradata reported an earnings per share (EPS) of $0.64 for Q3, surpassing the Zacks Consensus Estimate of $0.48 per share. This represents a significant earnings surprise of 33.33%.

|code|Ticker|Name|Date|Revenue Surprise|Percentage Change|market_code|
|---|---|---|---|---|---|---|
|TDC|TDC.N|Teradata|20231002||0.4887|169|
|TDC|TDC.N|Teradata|20231003||-2.763|169|
|TDC|TDC.N|Teradata|20231004||2.0232|169|
|TDC|TDC.N|Teradata|20231005||0.4902|169|
|TDC|TDC.N|Teradata|20231006||2.4612|169|
|TDC|TDC.N|Teradata|20231009||-1.0171|169|
|TDC|TDC.N|Teradata|20231010||0.6777|169|
|TDC|TDC.N|Teradata|20231011||0.1303|169|
|TDC|TDC.N|Teradata|20231012||-3.3615|169|
|TDC|TDC.N|Teradata|20231013||-0.8752|169|

2. **Stock Market Reaction**: The market responded favorably to the earnings news. Teradata's stock price likely benefited from the positive earnings surprise, as investors tend to reward companies that exceed expectations with higher stock prices.
3. **Guidance Update**: Teradata updated its Q3 earnings guidance to $0.54-0.58 per share, indicating a more optimistic outlook for the quarter. This guidance was higher than the consensus estimate of $0.49 per share, which could have further bolstered investor confidence.
4. **Analyst Adjustments**: Following the earnings release, analysts at Zacks Research reduced their FY2024 EPS estimates for Teradata, which might suggest a more cautious outlook in the long term. However, the immediate reaction to the Q3 earnings surprise was likely positive.
5. **Broader Market Perception**: The strong adoption of Teradata's cloud solutions, as highlighted in its Q2 earnings report, suggests a strategic shift that could be viewed favorably by the market. The company's expanding partner base, including major tech firms, may also have contributed to a more positive market perception.

In conclusion, Teradata's Q3 earnings surprise had a likely positive impact on its stock, given the company's updated guidance, the market's tendency to reward earnings beats, and the broader positive sentiment surrounding Teradata's strategic shifts and partnerships.