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Gartner (IT) Q1 Earnings and Revenues Surpass Estimates

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Gartner, Inc. (IT - Free Report)  reported better-than-expected first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings (excluding 49 cents from non-recurring items) per share of $2.88 beat the Zacks Consensus Estimate by 41.2% and increased 23.6% year over year. Revenues of $1.41 billion beat the Zacks Consensus Estimate by 1.3% and improved 11.6% year over year on a reported basis and 14.3% on a foreign-currency-neutral basis.

The total contract value was $4.5 billion, up 10.4% year over year on a foreign-currency-neutral basis.

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. Price, Consensus and EPS Surprise

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

Quarterly Numbers in Detail

Revenues in the Research segment increased 7.1% year over year on a reported basis and 9.5% on a foreign-currency-neutral basis to $1.22 billion. The gross contribution margin was 73.9% in the reported quarter.

The Conferences segment’s revenues surged more than 100% year over year on a reported basis as well as on a foreign-currency-neutral basis to $64.6 million. The gross contribution margin was 41.4% in the reported quarter.

Revenues in Consulting segment grew 9.5% year over year on a reported basis and 14.1% on a foreign-currency-neutral basis to $127 million. The gross contribution margin was 40% in the reported quarter.

Adjusted EBITDA of $379 million improved 15.3% year over year on a reported basis and 19.1% on a foreign-currency-neutral basis.

Operating cash flow totaled $165 million while free cash flow was $144 million in the reported quarter. Capital expenditures totaled $21 million. Gartner repurchased $107 million worth of common shares.

2023 Outlook

Adjusted EPS is anticipated to be $9.50. The current Zacks Consensus Estimate for adjusted EPS is $9.49.

Adjusted EBITDA is projected to be $1.33 billion. Free cash flow is anticipated to be $920 million.

Gartner currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Snapshot

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.

 


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