We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gartner (IT) Q3 Earnings and Revenues Top Estimates, View Up
Read MoreHide Full Article
Gartner, Inc.(IT - Free Report) reported better-than-expected third-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.03 beat the consensus mark by 23% and increased more than 100% year over year. Revenues of $1.16 billion beat the consensus estimate by 2.2% and improved 16.3% year over year on a reported basis and 15% on a foreign currency-neutral basis.
Total contract value was $4 billion, up 13.8% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 105%, outperforming the 40.6% growth of the industry it belongs to and 23.9% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 16.2% year over year on a reported basis and 14.8% on a foreign currency-neutral basis, to $1.04 billion. Gross contribution margin was 74.2% in the reported quarter.
Revenues at the Conferences segment grew 91.7% year over year on a reported basis and 93.2% on a foreign currency-neutral basis, to $24 million. Gross contribution margin was 46.9% in the reported quarter.
Revenues at the Consulting segment grew 6.3% year over year on a reported basis and 5.7% on a foreign currency-neutral basis, to $95 million. Gross contribution margin was 32.7% in the reported quarter.
Adjusted EBITDA of $305 million improved 82.3% year over year on a reported basis and 79.9% on a foreign currency-neutral basis.
Operating cash flow totaled $345 million and free cash flow was $331 million in the reported quarter. Capital expenditures totaled $14 million. The company repurchased 1.3 million common shares for $355 million.
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.66 billion compared with the prior guidance of $4.57 billion. The current Zacks Consensus Estimate of $4.62 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $8.54 compared with the prior guidance of $7.60. The current Zacks Consensus Estimate of $7.83 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.26 billion compared with the prior guidance of $1.16 billion. Free cash flow is now anticipated to be $1.23 billion compared with the prior guidance of $1.13 billion.
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Gartner (IT) Q3 Earnings and Revenues Top Estimates, View Up
Gartner, Inc.(IT - Free Report) reported better-than-expected third-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.03 beat the consensus mark by 23% and increased more than 100% year over year. Revenues of $1.16 billion beat the consensus estimate by 2.2% and improved 16.3% year over year on a reported basis and 15% on a foreign currency-neutral basis.
Total contract value was $4 billion, up 13.8% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 105%, outperforming the 40.6% growth of the industry it belongs to and 23.9% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 16.2% year over year on a reported basis and 14.8% on a foreign currency-neutral basis, to $1.04 billion. Gross contribution margin was 74.2% in the reported quarter.
Revenues at the Conferences segment grew 91.7% year over year on a reported basis and 93.2% on a foreign currency-neutral basis, to $24 million. Gross contribution margin was 46.9% in the reported quarter.
Revenues at the Consulting segment grew 6.3% year over year on a reported basis and 5.7% on a foreign currency-neutral basis, to $95 million. Gross contribution margin was 32.7% in the reported quarter.
Adjusted EBITDA of $305 million improved 82.3% year over year on a reported basis and 79.9% on a foreign currency-neutral basis.
Operating cash flow totaled $345 million and free cash flow was $331 million in the reported quarter. Capital expenditures totaled $14 million. The company repurchased 1.3 million common shares for $355 million.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
2021 View
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.66 billion compared with the prior guidance of $4.57 billion. The current Zacks Consensus Estimate of $4.62 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $8.54 compared with the prior guidance of $7.60. The current Zacks Consensus Estimate of $7.83 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.26 billion compared with the prior guidance of $1.16 billion. Free cash flow is now anticipated to be $1.23 billion compared with the prior guidance of $1.13 billion.
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) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.