A month has gone by since the last earnings report for Gartner (IT Quick QuoteIT - Free Report) . Shares have lost about 1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Gartner due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Gartner Surpasses Q2 Earnings & Revenue Estimates

Gartner 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.

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). 

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).

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 8.7% due to these changes.

VGM Scores

At this time, Gartner has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Gartner has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Gartner belongs to the Zacks Consulting Services industry. Another stock from the same industry, FTI Consulting (FCN Quick QuoteFCN - Free Report) , has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.

FTI Consulting reported revenues of $754.99 million in the last reported quarter, representing a year-over-year change of +6.1%. EPS of $1.43 for the same period compares with $1.74 a year ago.

FTI Consulting is expected to post earnings of $2.04 per share for the current quarter, representing a year-over-year change of +1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

FTI Consulting has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.