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.
Gartner (IT) Surpasses Q1 Earnings and Revenue Estimates
Read MoreHide Full Article
Gartner, Inc. (IT - 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 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).
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.
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 - 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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Gartner (IT) Surpasses Q1 Earnings and Revenue Estimates
Gartner, Inc. (IT - 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.
Gartner, Inc. Price and EPS Surprise
Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote
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 - 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 - 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 - 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.