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Adjusted earnings (excluding 37 cents from non-recurring items) per share of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis.
Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Quarterly Numbers in Detail
Revenues in the Research segment increased 5.7% year over year on a reported basis and 6.5% on a foreign-currency-neutral basis to $1.21 billion. Gross contribution margin was 73.3%, which came to $885 million in the reported quarter.
Conferences’ revenues surged 48.8% year over year on a reported basis and 48.4% on foreign-currency-neutral basis to $169 million. Gross contribution margin was 58.3% in the reported quarter.
Revenues in the Consulting segment grew 4.8% year over year on a reported basis and 5.9% on a foreign-currency-neutral basis to $126 million. Gross contribution margin was 37.4% in the reported quarter.
Adjusted EBITDA of $384 million declined 1.2% year over year on a reported basis and 0.3% on a foreign-currency-neutral basis.
Operating cash flow totaled $436 million while free cash flow was $410 million in the reported quarter. Capital expenditures totaled $26 million.
Updated 2023 Outlook
Total revenues are expected to be $5.85 billion, up from the previous guidance of $5.90 billion. The Zacks Consensus Estimate for the same is pegged at $5.92 billion, which is higher than the expected figure. Adjusted earnings per share is now anticipated to be $10.00, up from the previous guidance of $9.50. The current consensus estimate of $10.04 exceeds the guidance.
Adjusted EBITDA is projected to be $1.36 billion, raised from the earlier guidance of $1.33 billion. Free cash flow is anticipated to be $975 million, up from the prior expectation of $920 million.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
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Gartner (IT) Surpasses Q2 Earnings and Revenue Estimates
Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter 2023 results.
Adjusted earnings (excluding 37 cents from non-recurring items) per share of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis.
Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Quarterly Numbers in Detail
Revenues in the Research segment increased 5.7% year over year on a reported basis and 6.5% on a foreign-currency-neutral basis to $1.21 billion. Gross contribution margin was 73.3%, which came to $885 million in the reported quarter.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Conferences’ revenues surged 48.8% year over year on a reported basis and 48.4% on foreign-currency-neutral basis to $169 million. Gross contribution margin was 58.3% in the reported quarter.
Revenues in the Consulting segment grew 4.8% year over year on a reported basis and 5.9% on a foreign-currency-neutral basis to $126 million. Gross contribution margin was 37.4% in the reported quarter.
Adjusted EBITDA of $384 million declined 1.2% year over year on a reported basis and 0.3% on a foreign-currency-neutral basis.
Operating cash flow totaled $436 million while free cash flow was $410 million in the reported quarter. Capital expenditures totaled $26 million.
Updated 2023 Outlook
Total revenues are expected to be $5.85 billion, up from the previous guidance of $5.90 billion. The Zacks Consensus Estimate for the same is pegged at $5.92 billion, which is higher than the expected figure. Adjusted earnings per share is now anticipated to be $10.00, up from the previous guidance of $9.50. The current consensus estimate of $10.04 exceeds the guidance.
Adjusted EBITDA is projected to be $1.36 billion, raised from the earlier guidance of $1.33 billion. Free cash flow is anticipated to be $975 million, up from the prior expectation of $920 million.
Currently, Gartner carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.