We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Why Is Gartner (IT) Up 1.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Gartner 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.
Quarterly Numbers in Detail
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.
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.
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
Adjusted earnings per share are anticipated to be $10.90. Adjusted EBITDA is projected to be $1.455 billion. The free cash flow is anticipated to be $1.080 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Gartner has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Gartner (IT) Up 1.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Gartner (IT - Free Report) Surpasses Q1 Earnings and Revenue Estimates
Gartner 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.
Quarterly Numbers in Detail
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.
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.
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
Adjusted earnings per share are anticipated to be $10.90. Adjusted EBITDA is projected to be $1.455 billion. The free cash flow is anticipated to be $1.080 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Gartner has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.