Gartner, Inc. (IT Quick QuoteIT - Free Report) has reported better-than-expected first-quarter 2024 results.

The company’s adjusted earnings (excluding 26 cents from non-recurring items) per share of $2.9 beat the Zacks Consensus Estimate by 16.3% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 4.5% year over year.

The IT stock has gained 45.9% over the past year, outperforming the 14.8% rally of the industry it belongs to and 23.7% growth of the Zacks S&P 500 Composite.

Revenues by Segments

Revenues in the Research segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the reported quarter.

Conferences’ revenues were $70 million, up 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2% which totaled to a gross contribution of $23 million.

Revenues in the Consulting segment amounted to $135 million, which grew 6% from the year-ago quarter on both reported basis and 6.9% on foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter which amounted to a gross contribution of $54 million.

Operating performance

Adjusted EBITDA of $382 million increased marginally from the year-ago quarter on a reported basis and 1.7% on a foreign-currency-neutral basis.

Balance Sheet & Cash Flow

Gartner had $1.2 billion in cash and cash equivalents at the end of the quarter compared with $1.3 billion at the end of the preceding quarter. The long-term debt was $2.5 billion compared with $2.4 billion at the end of fourth-quarter 2023.

The operating cash flow totaled $189 million and the free cash flow was $166 million in the reported quarter. Capital expenditure totaled $23 million. The company had returned $225 million by repurchasing 500,000 shares.

2024 Outlook

For 2024, total revenues are expected to be $6.2 billion compared with $6.24 billion mentioned previously. The Zacks Consensus Estimate is pegged at $6.28 billion, which is higher than the company’s guidance.

Adjusted earnings per share are anticipated to be $10.90 compared with $10.55 mentioned previously. The consensus estimate for earnings is pegged at $11.29 per share, which is higher than the company’s guidance. Adjusted EBITDA is projected to be $1.455 billion. The free cash flow is anticipated to be $1.080 billion.

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

Equifax Inc. (EFX Quick QuoteEFX - Free Report) reported mixed first-quarter 2024 results.

EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

Waste Management Inc. (WM Quick QuoteWM - Free Report) reported mixed first-quarter 2024 results.

WM’s adjusted earnings per share of $1.8 surpassed the Zacks Consensus Estimate by 15.1% and improved 33.6% year over year. Total revenues of $5.2 billion missed the consensus estimate by a slight margin but increased 5.5% year over year.

Robert Half International Inc. (RHI Quick QuoteRHI - Free Report) reported mixed first-quarter 2024 results.

RHI’s quarterly earnings of 61 cents per share beat the consensus mark by 1.7% but declined 46.5% year over year. Revenues of $1.48 billion missed the consensus mark by a slight margin and decreased 14% year over year.