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) Q4 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Gartner, Inc. (IT - Free Report) reported solid fourth-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.18 beat the consensus mark by 43.9% but decreased 2% on a year-over-year basis.
Revenues of $1.20 billion outpaced the consensus estimate by 0.4% and improved 11% year over year on a reported basis and on a foreign currency-neutral basis. Adjusted revenues also improved 11% year over year on a reported basis and on a foreign currency-neutral basis.
Total contract value was $3.4 billion, up 12% year over year on a foreign currency-neutral basis.
Over the past year, shares of Gartner have gained 14.4% compared with 25.7% growth of the industry it belongs to and 18.4% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 11% year over year on a reported basis and on a foreign currency-neutral basis to $882 million. Gross contribution margin was 70% in the reported quarter.
Revenues at the Conferences segment increased 11% year over year on a reported basis and 12% on a foreign currency-neutral basis to $217 million. Gross contribution margin was 53%.
Revenues at the Consulting segment grew 9% year over year on a reported basis and on a foreign currency-neutral basis to $104 million. Gross contribution margin was 28% in the reported quarter.
Adjusted EBITDA of $218 million improved 3% year over year on a reported basis and 5% on a foreign currency-neutral basis.
Operating cash flow totaled $83 million and free cash flow was $40 million in the reported quarter. Capital expenditures totaled $53 million.
Gartner unveiled its full-year 2020 guidance. The company expects revenues to register approximately 9% growth on a foreign currency-neutral basis.
Adjusted EPS is anticipated to be roughly $4.06. The current Zacks Consensus Estimate of $4.04 lies below the expectation.
Adjusted EBITDA margin is projected to register at least 16.1% growth or above. Operating cash flow is anticipated to be approximately $627 million and free cash flow is expected to be roughly $505 million.
Zacks Rank & Upcoming Releases
Currently, Gartner carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like S&P Global (SPGI - Free Report) , Genpact (G - Free Report) and FLEETCOR Technologies , each scheduled to release results on Feb 6.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Gartner (IT) Q4 Earnings and Revenues Surpass Estimates
Gartner, Inc. (IT - Free Report) reported solid fourth-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.18 beat the consensus mark by 43.9% but decreased 2% on a year-over-year basis.
Revenues of $1.20 billion outpaced the consensus estimate by 0.4% and improved 11% year over year on a reported basis and on a foreign currency-neutral basis. Adjusted revenues also improved 11% year over year on a reported basis and on a foreign currency-neutral basis.
Total contract value was $3.4 billion, up 12% year over year on a foreign currency-neutral basis.
Over the past year, shares of Gartner have gained 14.4% compared with 25.7% growth of the industry it belongs to and 18.4% increase of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
Revenues at the Research segment increased 11% year over year on a reported basis and on a foreign currency-neutral basis to $882 million. Gross contribution margin was 70% in the reported quarter.
Revenues at the Conferences segment increased 11% year over year on a reported basis and 12% on a foreign currency-neutral basis to $217 million. Gross contribution margin was 53%.
Revenues at the Consulting segment grew 9% year over year on a reported basis and on a foreign currency-neutral basis to $104 million. Gross contribution margin was 28% in the reported quarter.
Adjusted EBITDA of $218 million improved 3% year over year on a reported basis and 5% on a foreign currency-neutral basis.
Operating cash flow totaled $83 million and free cash flow was $40 million in the reported quarter. Capital expenditures totaled $53 million.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
2020 View
Gartner unveiled its full-year 2020 guidance. The company expects revenues to register approximately 9% growth on a foreign currency-neutral basis.
Adjusted EPS is anticipated to be roughly $4.06. The current Zacks Consensus Estimate of $4.04 lies below the expectation.
Adjusted EBITDA margin is projected to register at least 16.1% growth or above. Operating cash flow is anticipated to be approximately $627 million and free cash flow is expected to be roughly $505 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 fourth-quarter 2019 earnings of key players like S&P Global (SPGI - Free Report) , Genpact (G - Free Report) and FLEETCOR Technologies , each scheduled to release results on Feb 6.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention.
See 7 handpicked stocks now >>