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Gartner (IT) Down 2.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Gartner (IT - Free Report) . Shares have lost about 2.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Gartner Surpasses Q4 Earnings & Revenue Estimates
Gartnerreported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. Revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis. Total contract value was $4.7 billion, up 12% year over year on a foreign-currency-neutral basis.
Quarterly Numbers in Detail
Revenues in Research segment increased 9% year over year on a reported basis and 13% on a foreign-currency-neutral basis to $1.18 billion. Gross contribution margin was 74% in the reported quarter.
Conferences’ revenues surged 76% year over year on a reported basis and 84% on a foreign-currency-neutral basis to $188 million. Gross contribution margin was 53% in the reported quarter.
Revenues in Consulting segment grew 17% year over year on a reported basis and 24% on a foreign-currency-neutral basis to $138 million. Gross contribution margin was 37% in the reported quarter.
Adjusted EBITDA of $421 million improved 37% year over year on a reported basis and 44% on a foreign-currency-neutral basis. Operating cash flow totaled $203 million while free cash flow was $166 million in the reported quarter. Capital expenditures totaled $38 million. Gartner repurchased $17 million common shares.
2023 View
Adjusted EPS is anticipated to be $8.80. Adjusted EBITDA is projected to be $1.26 billion. Free cash flow is anticipated to be $920 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Gartner has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 C. 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 #2 (Buy). We expect an above average return from the stock in the next few months.
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Gartner (IT) Down 2.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Gartner (IT - Free Report) . Shares have lost about 2.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Gartner Surpasses Q4 Earnings & Revenue Estimates
Gartner reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. Revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis. Total contract value was $4.7 billion, up 12% year over year on a foreign-currency-neutral basis.
Quarterly Numbers in Detail
Revenues in Research segment increased 9% year over year on a reported basis and 13% on a foreign-currency-neutral basis to $1.18 billion. Gross contribution margin was 74% in the reported quarter.
Conferences’ revenues surged 76% year over year on a reported basis and 84% on a foreign-currency-neutral basis to $188 million. Gross contribution margin was 53% in the reported quarter.
Revenues in Consulting segment grew 17% year over year on a reported basis and 24% on a foreign-currency-neutral basis to $138 million. Gross contribution margin was 37% in the reported quarter.
Adjusted EBITDA of $421 million improved 37% year over year on a reported basis and 44% on a foreign-currency-neutral basis. Operating cash flow totaled $203 million while free cash flow was $166 million in the reported quarter. Capital expenditures totaled $38 million. Gartner repurchased $17 million common shares.
2023 View
Adjusted EPS is anticipated to be $8.80. Adjusted EBITDA is projected to be $1.26 billion. Free cash flow is anticipated to be $920 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Gartner has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 C. 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 #2 (Buy). We expect an above average return from the stock in the next few months.