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Gartner, Inc.(IT - Free Report) reported better-than-expected second-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.20 beat the consensus mark by 51.9% but decreased 17.2% year over year. Revenues of $973.1 million beat the consensus estimate by 3.5% but declined 9.1% year over year on a reported basis and 7.6% on a foreign currency-neutral basis.
Total contract value was $3.4 billion, up 7% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have lost 18.5% against 6.4% growth of the industry it belongs to and 2.3% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 6% year over year on a reported basis and 7.8% on a foreign currency-neutral basis to $875 million. Gross contribution margin was 72.3% in the reported quarter.
Revenues at the Consulting segment declined 5.9% year over year on a reported basis and 5.1% on a foreign currency-neutral basis to $97 million. Gross contribution margin was 34.4% in the reported quarter.
Adjusted EBITDA of $192 million improved 4% year over year on a reported basis and 6% on a foreign currency-neutral basis.
Operating cash flow totaled $343 million and free cash flow was $322 million in the reported quarter. Capital expenditures totaled $21 million.
2020 View
Gartner raised its full-year 2020 guidance. The company now expects total revenues to be $3.88 billion compared with the prior guidance of $3.81 billion. The current Zacks Consensus Estimate of $3.83 billion is below the updated guidance.
Adjusted EPS is anticipated to be $3.08 compared with the prior guidance of $3.00. The current Zacks Consensus Estimate of $3.07 is below the updated guidance.
Adjusted EBITDA is projected to be $635 million compared with the prior guidance of $625 million. Free cash flow is anticipated to be $425 million compared with the prior guidance of $300 million.
Currently, Gartner carries a Zacks Rank #4 (Sell).
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
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Gartner (IT) Beats Q2 Earnings Estimates, Raises 2020 View
Gartner, Inc.(IT - Free Report) reported better-than-expected second-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.20 beat the consensus mark by 51.9% but decreased 17.2% year over year. Revenues of $973.1 million beat the consensus estimate by 3.5% but declined 9.1% year over year on a reported basis and 7.6% on a foreign currency-neutral basis.
Total contract value was $3.4 billion, up 7% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have lost 18.5% against 6.4% growth of the industry it belongs to and 2.3% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 6% year over year on a reported basis and 7.8% on a foreign currency-neutral basis to $875 million. Gross contribution margin was 72.3% in the reported quarter.
Revenues at the Consulting segment declined 5.9% year over year on a reported basis and 5.1% on a foreign currency-neutral basis to $97 million. Gross contribution margin was 34.4% in the reported quarter.
Adjusted EBITDA of $192 million improved 4% year over year on a reported basis and 6% on a foreign currency-neutral basis.
Operating cash flow totaled $343 million and free cash flow was $322 million in the reported quarter. Capital expenditures totaled $21 million.
2020 View
Gartner raised its full-year 2020 guidance. The company now expects total revenues to be $3.88 billion compared with the prior guidance of $3.81 billion. The current Zacks Consensus Estimate of $3.83 billion is below the updated guidance.
Adjusted EPS is anticipated to be $3.08 compared with the prior guidance of $3.00. The current Zacks Consensus Estimate of $3.07 is below the updated guidance.
Adjusted EBITDA is projected to be $635 million compared with the prior guidance of $625 million. Free cash flow is anticipated to be $425 million compared with the prior guidance of $300 million.
Currently, Gartner carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>