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) Q2 Earnings Beat Estimates, 2022 EPS Guidance Up
Read MoreHide Full Article
Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter 2022 results, wherein earnings as well as revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 32 cents from non-recurring items) per share of $2.85 beat the consensus mark by 33.2% and increased 27.2% year over year. Revenues of $1.38 billion beat the consensus estimate by 4.4% and improved 17.9% year over year on a reported basis and 21.8% on a foreign-currency-neutral basis.
Total contract value was $4.3 billion, up 15.4% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have lost 8.4% compared with 3.6% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 13.9% year over year on a reported basis and 17.3% on a foreign-currency-neutral basis to $1.14 billion. Gross contribution margin was 73.9% in the reported quarter.
Revenues at the Conferences segment surged 95.1% year over year on a reported basis and 102.2% on a foreign-currency-neutral basis to $114 million. Gross contribution margin dropped to 64.8% in the reported quarter.
Revenues at the Consulting segment grew 13.9% year over year on a reported basis and 20.5% on a foreign-currency-neutral basis to $121 million. Gross contribution margin was 41.6% in the reported quarter.
Adjusted EBITDA of $389 million improved 9.5% year over year on a reported basis and 14.2% on a foreign-currency-neutral basis.
Operating cash flow totaled $416 million while free cash flow was $395 million in the reported quarter. Capital expenditures totaled $21 million. Gartner repurchased 1.8 million common shares for $479 million.
2022 View
Adjusted EPS is anticipated to be $8.85 (previous view: $7.80). The current Zacks Consensus Estimate of $8.08 lies below the guidance.
Adjusted EBITDA is projected to be $1.235 billion (previous view: $1.14 billion). Free cash flow is anticipated to be 985 million (previous view: $930 million).
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Gartner (IT) Q2 Earnings Beat Estimates, 2022 EPS Guidance Up
Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter 2022 results, wherein earnings as well as revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 32 cents from non-recurring items) per share of $2.85 beat the consensus mark by 33.2% and increased 27.2% year over year. Revenues of $1.38 billion beat the consensus estimate by 4.4% and improved 17.9% year over year on a reported basis and 21.8% on a foreign-currency-neutral basis.
Total contract value was $4.3 billion, up 15.4% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have lost 8.4% compared with 3.6% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 13.9% year over year on a reported basis and 17.3% on a foreign-currency-neutral basis to $1.14 billion. Gross contribution margin was 73.9% in the reported quarter.
Revenues at the Conferences segment surged 95.1% year over year on a reported basis and 102.2% on a foreign-currency-neutral basis to $114 million. Gross contribution margin dropped to 64.8% in the reported quarter.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Revenues at the Consulting segment grew 13.9% year over year on a reported basis and 20.5% on a foreign-currency-neutral basis to $121 million. Gross contribution margin was 41.6% in the reported quarter.
Adjusted EBITDA of $389 million improved 9.5% year over year on a reported basis and 14.2% on a foreign-currency-neutral basis.
Operating cash flow totaled $416 million while free cash flow was $395 million in the reported quarter. Capital expenditures totaled $21 million. Gartner repurchased 1.8 million common shares for $479 million.
2022 View
Adjusted EPS is anticipated to be $8.85 (previous view: $7.80). The current Zacks Consensus Estimate of $8.08 lies below the guidance.
Adjusted EBITDA is projected to be $1.235 billion (previous view: $1.14 billion). Free cash flow is anticipated to be 985 million (previous view: $930 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.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.