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Gartner (IT) Q2 Earnings and Revenues Top Estimates, View Up
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Gartner, Inc.(IT - Free Report) reported better-than-expected second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.24 beat the consensus mark by 28.7% and increased 86.7% year over year. Revenues of $1.17 billion beat the consensus estimate by 4.1% and improved 20% year over year on a reported basis and 15.9% on a foreign currency-neutral basis.
Total contract value was $3.8 billion, up 10.7% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 65.4%, outperforming the 23.6% growth of the industry it belongs to and 18.2% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 14.6% year over year on a reported basis and 10.7% on a foreign currency-neutral basis, to $1 billion. Gross contribution margin was 74% in the reported quarter.
Revenues at the Conferences segment came in at $58 million. Gross contribution margin was 73.2% in the reported quarter.
Revenues at the Consulting segment grew 8.6% year over year on a reported basis and 4.5% on a foreign currency-neutral basis, to $106 million. Gross contribution margin was 40.4% in the reported quarter.
Adjusted EBITDA of $355 million improved 84.9% year over year on a reported basis and 75.4% on a foreign currency-neutral basis.
Operating cash flow totaled $575 million and free cash flow was $563 million in the reported quarter. Capital expenditures totaled $12 million.
The company repurchased 3.1 million common shares for $685 million. Further, its board of directors raised the share repurchase authorization by $800 million in July 2021.
2021 View
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.57 billion compared with the prior guidance of $4.51 billion. The current Zacks Consensus Estimate of $4.54 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $7.60 compared with the prior guidance of $6.25. The current Zacks Consensus Estimate of $6.45 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.16 billion compared with the prior guidance of $1 billion. Free cash flow is now anticipated to be $1.13 billion compared with the prior guidance of $850 million.
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
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Gartner (IT) Q2 Earnings and Revenues Top Estimates, View Up
Gartner, Inc.(IT - Free Report) reported better-than-expected second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.24 beat the consensus mark by 28.7% and increased 86.7% year over year. Revenues of $1.17 billion beat the consensus estimate by 4.1% and improved 20% year over year on a reported basis and 15.9% on a foreign currency-neutral basis.
Total contract value was $3.8 billion, up 10.7% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 65.4%, outperforming the 23.6% growth of the industry it belongs to and 18.2% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 14.6% year over year on a reported basis and 10.7% on a foreign currency-neutral basis, to $1 billion. Gross contribution margin was 74% in the reported quarter.
Revenues at the Conferences segment came in at $58 million. Gross contribution margin was 73.2% in the reported quarter.
Revenues at the Consulting segment grew 8.6% year over year on a reported basis and 4.5% on a foreign currency-neutral basis, to $106 million. Gross contribution margin was 40.4% in the reported quarter.
Adjusted EBITDA of $355 million improved 84.9% year over year on a reported basis and 75.4% on a foreign currency-neutral basis.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Operating cash flow totaled $575 million and free cash flow was $563 million in the reported quarter. Capital expenditures totaled $12 million.
The company repurchased 3.1 million common shares for $685 million. Further, its board of directors raised the share repurchase authorization by $800 million in July 2021.
2021 View
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.57 billion compared with the prior guidance of $4.51 billion. The current Zacks Consensus Estimate of $4.54 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $7.60 compared with the prior guidance of $6.25. The current Zacks Consensus Estimate of $6.45 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.16 billion compared with the prior guidance of $1 billion. Free cash flow is now anticipated to be $1.13 billion compared with the prior guidance of $850 million.
Currently, Gartner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.