We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adjusted earnings (excluding 40 cents from non-recurring items) per share of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
Revenues in the Research segment increased 6% year over year on a reported basis and 5% on a foreign-currency-neutral basis and matched our estimated $1.24 billion. The gross contribution margin was 74%, which came to $921 million in the reported quarter.
Conferences’ revenues gained 14% year over year on a reported basis and 12% on a foreign-currency-neutral basis and matched our estimated $214 million. The gross contribution margin was 50% in the reported quarter, amounting to $108 million.
Revenues in the Consulting segment declined 7% year over year on both reported basis and foreign-currency-neutral basis to $128 million, missing our estimated $133 million. The gross contribution margin was 27% in the reported quarter to $35 million.
Adjusted EBITDA of $386 million decreased 8.3% year over year on a reported basis and 9% on a foreign-currency-neutral basis.
Operating cash flow totaled $224 million while free cash flow was $196 million in the reported quarter. Capital expenditures totaled $28 million.
In 2023, Gartner returned $600 million by repurchasing 1.8 million shares.
2024 Outlook
Total revenues are expected to be $6.24 billion. The Zacks Consensus Estimate is pegged at $6.36 billion. Adjusted earnings per share (EPS) are now anticipated to be $10.55. The consensus estimate is pegged at $12.09 per share. Adjusted EBITDA is projected to be $1.44 billion. Free cash flow is anticipated to be $1.065 billion.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues both beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gartner (IT) Surpasses Q4 Earnings and Revenue Estimates
Gartner, Inc. (IT - Free Report) reported better-than-expected fourth-quarter 2023 results.
Adjusted earnings (excluding 40 cents from non-recurring items) per share of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
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 6% year over year on a reported basis and 5% on a foreign-currency-neutral basis and matched our estimated $1.24 billion. The gross contribution margin was 74%, which came to $921 million in the reported quarter.
Conferences’ revenues gained 14% year over year on a reported basis and 12% on a foreign-currency-neutral basis and matched our estimated $214 million. The gross contribution margin was 50% in the reported quarter, amounting to $108 million.
Revenues in the Consulting segment declined 7% year over year on both reported basis and foreign-currency-neutral basis to $128 million, missing our estimated $133 million. The gross contribution margin was 27% in the reported quarter to $35 million.
Adjusted EBITDA of $386 million decreased 8.3% year over year on a reported basis and 9% on a foreign-currency-neutral basis.
Operating cash flow totaled $224 million while free cash flow was $196 million in the reported quarter. Capital expenditures totaled $28 million.
In 2023, Gartner returned $600 million by repurchasing 1.8 million shares.
2024 Outlook
Total revenues are expected to be $6.24 billion. The Zacks Consensus Estimate is pegged at $6.36 billion. Adjusted earnings per share (EPS) are now anticipated to be $10.55. The consensus estimate is pegged at $12.09 per share. Adjusted EBITDA is projected to be $1.44 billion. Free cash flow is anticipated to be $1.065 billion.
Currently, Gartner carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues both beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.