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Gartner (IT) to Report Q1 Earnings: Here's What to Expect

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Gartner, Inc. (IT - Free Report) is scheduled to release its first-quarter 2023 results on May 2, before the market open.

The company has an impressive earnings surprise history with earnings surpassing the Zacks Consensus Estimate in all the four trailing quarters. The average earnings surprise is 32.7%.

Q1 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $1.39 billion, up 10.2% from the year-ago actual figure. The expected improvement in segmental results can be attributed to the likely increase in revenues.

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

Segmental Information

Revenues from the Research segment are likely to have increased 7.2% on a year-over-year basis, the Zacks Consensus Estimate of which is currently pegged at $1.2 billion. Expected contract value growth is likely to have driven the increase in revenues.

The Zacks Consensus Estimate for the Consulting segment’s revenues in the to-be-reported quarter is pegged at $119 million, indicating a 2.6% increase year over year. Such an uptick can be correlated to the probable improvement in headcount.

Revenues from the Conferences segment are likely to have increased by more than 100% on a year-over-year basis, the Zacks Consensus Estimate of which is currently pegged at $46.5 million.The increase can be attributed to the expected increase in in-person destination conferences.

Supply-chain disruptions, volatile labor and energy markets are likely to have weighed on the company’s bottom line. The consensus estimate for the bottom line in the to-be-reported quarter stands at $2.04 per share which indicates a decline of 12.5% from the year-ago figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IT this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

IT has an Earnings ESP of -14.32% and a Zacks Rank of 1.

Stocks to Consider

Here are a few  stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.

Charles River Associates (CRAI - Free Report) currently has an Earnings ESP of +2.63% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to report its first-quarter 2023 results on May 4, before the market open.

The Zacks Consensus Estimate for the bottom line is pegged at $1.33 per share, down 13.1% from the year-ago figure. The consensus mark for revenues is pegged at $152.6 million, up 2.8% from the figure reported a year ago. CRAI had an average surprise of 19.8% in the previous four quarters.

Avis Budget (CAR - Free Report) currently has an Earnings ESP of +12.63% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on May 1, after the market close.

The Zacks Consensus Estimate for earnings is pegged at $3.42 per share, down 65.8% from the year-ago figure. The consensus mark for revenues is pegged at $2.5 billion, up 2.9% from the prior-year figure. CAR had an average surprise of 78% in the previous four quarters.

Aptiv (APTV - Free Report) currently has an Earnings ESP of +4.11% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on May 4, before the market open.

The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, up 41.3% from the year-ago figure. The consensus mark for revenues is pegged at $4.53 billion, up 8.4% from the prior-year figure. APTV has an average negative earnings surprise of 6.6% in the previous four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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