Gartner, Inc. (IT - Free Report) first-quarter 2019 adjusted earnings of 58 cents per share surpassed the Zacks Consensus Estimate by 5 cents but decreased 19% on a year-over-year basis. Earnings exceeded the guided adjusted EPS range of 50-54 cents.
Revenues of $970.44 million beat the consensus estimate of $970 million. The top line improved 1% year over year on a reported basis and 4% on a foreign currency-neutral basis. Adjusted revenues improved 8% year over year on a reported basis and 11% on a foreign currency-neutral basis.
Total contract value was $3.1 billion, up 11% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 26.4% compared with 24.3% rise of the industry it belongs to and 17% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 8% year over year on a reported basis and 11% on a foreign currency-neutral basis to $825 million. Gross contribution margin was 70% in the reported quarter.
Revenues at the Conferences segment increased 13% year over year on a reported basis and 17% on a foreign currency-neutral basis to $52 million. Gross contribution margin was 36%.
Revenues at the Consulting segment grew 12% year over year on a reported basis and 16% on a foreign currency-neutral basis to $93 million. Gross contribution margin was 31% in the reported quarter.
Adjusted EBITDA of $142 million decreased 2% year over year on reported basis and was flat on a foreign currency-neutral basis.
Operating cash flow totaled $36 million and free cash flow was $35 million in the reported quarter. Capital expenditures came in at $20 million.
Gartner reaffirmed its full-year 2019 guidance. The company projects revenues in the range of $4.22-$4.32 billion. The current Zacks Consensus Estimate of $4.27 billion lies within the guided range.
Adjusted EPS is anticipated in the range of $3.82-$4.19. The current Zacks Consensus Estimate of $3.97 lies within the guided range.
Adjusted EBITDA is projected in the range of $720-$765 million. Operating cash flow is anticipated between $542 million and $582 million while free cash flow is expected in the range of $455-$485 million.
Zacks Rank & Upcoming Releases
Currently, Gartner carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting reports of key players like MAXIMUS (MMS - Free Report) , Green Dot (GDOT - Free Report) and Equifax (EFX - Free Report) . While MAXIMUS is slated to report second-quarter fiscal 2019 results on May 9, Green Dot and Equifax are scheduled to release first-quarter 2019 results on May 8 and May 10, respectively.
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