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Gartner (IT) Q4 Earnings & Revenues Top Estimates, Rise Y/Y

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Gartner, Inc.(IT - Free Report) reported better-than-expected fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.99 beat the consensus mark by 21.5% and increased 88% year over year. Revenues of $1.31 billion beat the consensus estimate by 3.9% and improved 17% year over year on a reported basis and 18% on a foreign-currency-neutral basis.

Total contract value was $4.2 billion, up 16% year over year on a foreign-currency-neutral basis.

Over the past year, shares of Gartner have gained 60.5%, outperforming the 33.6% growth of the industry it belongs to and 14.8% increase of the Zacks S&P 500 composite.

Zacks Investment ResearchImage Source: Zacks Investment Research

Quarterly Numbers in Detail

Revenues at the Research segment increased 17% year over year on a reported as well as a foreign-currency-neutral basis, to $1.08 billion. Gross contribution margin was 74% in the reported quarter.

Revenues at the Conferences segment grew 15% year over year on a reported basis and 16% on a foreign-currency-neutral basis, to $107 million. Gross contribution margin was 61% in the reported quarter.

Revenues at the Consulting segment grew 26% year over year on a reported basis and 27% on a foreign-currency-neutral basis, to $118 million. Gross contribution margin was 39% in the reported quarter.

Adjusted EBITDA of $307 million improved 25% year over year on a reported basis and 26% on a foreign-currency-neutral basis.

Operating cash flow totaled $235 million and free cash flow was $214 million in the reported quarter. Capital expenditures totaled $21 million. The company repurchased 0.6 million common shares for $217 million.

2022 View

Gartner unveiled its full-year 2022 guidance. The company expects total revenues to be $5.18 billion. The current Zacks Consensus Estimate of $5.29 billion lies above the guidance.

Adjusted EPS is anticipated to be $6.74. The current Zacks Consensus Estimate of $7.07 lies below the guidance.

Adjusted EBITDA is projected to be $1.04 billion. Free cash flow is anticipated to be $850 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

Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.

Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.

Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results.

ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.

Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.

Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.