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Gartner (IT) Q1 Earnings Beat Estimates, 2022 EPS Guidance Up
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Gartner, Inc. (IT - Free Report) reported better-than-expected first-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.33 beat the consensus mark by 23.3% and increased 16.5% year over year. Revenues of $1.26 billion beat the consensus estimate by 1.7% and improved 14.4% year over year on a reported basis and 16.4% on a foreign-currency-neutral basis.
Total contract value was $4.2 billion, up 16.3% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have gained 28.6%, outperforming 5.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 16% year over year on a reported and 17.9% on a foreign-currency-neutral basis to $1.14 billion. Gross contribution margin was 74.7% in the reported quarter.
Revenues at the Conferences segment fell 58.3% year over year on a reported basis and 57.3% on a foreign-currency-neutral basis to $10 million. Gross contribution margin dropped to 27.8% in the reported quarter.
Revenues at the Consulting segment grew 16.6% year over year on a reported basis and 19.9% on a foreign-currency-neutral basis to $116 million. Gross contribution margin was 44% in the reported quarter.
Adjusted EBITDA of $329 million improved 2.6% year over year on a reported basis and 4.7% on a foreign-currency-neutral basis.
Operating cash flow totaled $168 million while free cash flow was $150 million in the reported quarter. Capital expenditures totaled $17 million. Gartner repurchased 1.6 million common shares for $451 million.
2022 View
Gartner raised its full-year 2022 guidance. IT expects total revenues to be $5.275 billion (previous view: $5.18 billion). The current Zacks Consensus Estimate of $5.23 billion lies above the projection.
Adjusted EPS is anticipated to be $7.80 (previous view: $6.74). The current Zacks Consensus Estimate of $7.21 lies below the guidance.
Adjusted EBITDA is projected to be $1.14 billion (previous view: $1.04 billion). Free cash flow is anticipated to be 930 million (previous view: $850 million).
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results as both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported and 13% on a local-currency basis.
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Gartner (IT) Q1 Earnings Beat Estimates, 2022 EPS Guidance Up
Gartner, Inc. (IT - Free Report) reported better-than-expected first-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.33 beat the consensus mark by 23.3% and increased 16.5% year over year. Revenues of $1.26 billion beat the consensus estimate by 1.7% and improved 14.4% year over year on a reported basis and 16.4% on a foreign-currency-neutral basis.
Total contract value was $4.2 billion, up 16.3% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have gained 28.6%, outperforming 5.3% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 16% year over year on a reported and 17.9% on a foreign-currency-neutral basis to $1.14 billion. Gross contribution margin was 74.7% in the reported quarter.
Revenues at the Conferences segment fell 58.3% year over year on a reported basis and 57.3% on a foreign-currency-neutral basis to $10 million. Gross contribution margin dropped to 27.8% in the reported quarter.
Revenues at the Consulting segment grew 16.6% year over year on a reported basis and 19.9% on a foreign-currency-neutral basis to $116 million. Gross contribution margin was 44% in the reported quarter.
Adjusted EBITDA of $329 million improved 2.6% year over year on a reported basis and 4.7% on a foreign-currency-neutral basis.
Operating cash flow totaled $168 million while free cash flow was $150 million in the reported quarter. Capital expenditures totaled $17 million. Gartner repurchased 1.6 million common shares for $451 million.
2022 View
Gartner raised its full-year 2022 guidance. IT expects total revenues to be $5.275 billion (previous view: $5.18 billion). The current Zacks Consensus Estimate of $5.23 billion lies above the projection.
Adjusted EPS is anticipated to be $7.80 (previous view: $6.74). The current Zacks Consensus Estimate of $7.21 lies below the guidance.
Adjusted EBITDA is projected to be $1.14 billion (previous view: $1.04 billion). Free cash flow is anticipated to be 930 million (previous view: $850 million).
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Currently, Gartner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results as both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported and 13% on a local-currency basis.