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Gartner (IT) Q3 Earnings Beat Estimates, 2022 EPS Guidance Up
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Gartner, Inc. (IT - Free Report) reported better-than-expected third-quarter 2022 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 24 cents from non-recurring items) per share of $2.41 beat the consensus mark by 30.3% and increased 18.7% year over year. Revenues of $1.33 billion beat the consensus estimate by 4.7% and improved 15.2% year over year on a reported basis and 20.4% on a foreign-currency-neutral basis.
Total contract value was $4.5 billion, up 14.5% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have lost 8.1% compared with a 16.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 10.7% year over year on a reported basis and 15.2% on a foreign-currency-neutral basis to $1.15 billion. Gross contribution margin was 73.9% in the reported quarter.
Revenues at the Conferences segment surged 215.5% year over year on a reported basis and 237% on a foreign-currency-neutral basis to $77 million. Gross contribution margin was at 52.3% in the reported quarter.
Revenues at the Consulting segment grew 13% year over year on a reported basis and 21.1% on a foreign-currency-neutral basis to $107 million. Gross contribution margin was 34.8% in the reported quarter.
Adjusted EBITDA of $332 million improved 8.5% year over year on a reported basis and 14.9% on a foreign-currency-neutral basis.
Operating cash flow totaled $315 million while free cash flow was $283 million in the reported quarter. Capital expenditures totaled $32 million. Gartner repurchased 0.4 million common shares for $97 million.
2022 View
Adjusted EPS is anticipated to be $10.06 (previous view: $8.85). The current Zacks Consensus Estimate of $9.06 lies below the guidance.
Adjusted EBITDA is projected to be $1.36 billion (previous view: $1.235 billion). Free cash flow is anticipated to be 1,025 million (previous view: $985 million).
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Gartner (IT) Q3 Earnings Beat Estimates, 2022 EPS Guidance Up
Gartner, Inc. (IT - Free Report) reported better-than-expected third-quarter 2022 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 24 cents from non-recurring items) per share of $2.41 beat the consensus mark by 30.3% and increased 18.7% year over year. Revenues of $1.33 billion beat the consensus estimate by 4.7% and improved 15.2% year over year on a reported basis and 20.4% on a foreign-currency-neutral basis.
Total contract value was $4.5 billion, up 14.5% year over year on a foreign-currency-neutral basis.
Over the past year, shares of Gartner have lost 8.1% compared with a 16.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 10.7% year over year on a reported basis and 15.2% on a foreign-currency-neutral basis to $1.15 billion. Gross contribution margin was 73.9% in the reported quarter.
Revenues at the Conferences segment surged 215.5% year over year on a reported basis and 237% on a foreign-currency-neutral basis to $77 million. Gross contribution margin was at 52.3% in the reported quarter.
Revenues at the Consulting segment grew 13% year over year on a reported basis and 21.1% on a foreign-currency-neutral basis to $107 million. Gross contribution margin was 34.8% in the reported quarter.
Adjusted EBITDA of $332 million improved 8.5% year over year on a reported basis and 14.9% on a foreign-currency-neutral basis.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Operating cash flow totaled $315 million while free cash flow was $283 million in the reported quarter. Capital expenditures totaled $32 million. Gartner repurchased 0.4 million common shares for $97 million.
2022 View
Adjusted EPS is anticipated to be $10.06 (previous view: $8.85). The current Zacks Consensus Estimate of $9.06 lies below the guidance.
Adjusted EBITDA is projected to be $1.36 billion (previous view: $1.235 billion). Free cash flow is anticipated to be 1,025 million (previous view: $985 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 Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.