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Gartner (IT) to Report Q1 Earnings: What's in the Cards?
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Gartner, Inc. (IT - Free Report) ) is scheduled to report first-quarter 2020 results on May 7, before market open.
While the company’s top line is likely to have benefited from strength across segments, the bottom line is expected to have been weighed down by rising expenses.
So far this year, shares of Gartner have lost 24.5% compared with 14.3% decline of the industry it belongs to and 12.1% decrease of the Zacks S&P 500 composite.
Let's check out how things have shaped up for the announcement.
Strength Across Segments Growth to Drive Top Line
Strength across Research and Consulting segments is likely to have driven Gartner’s first-quarter 2020 revenues, the Zacks Consensus Estimate for which stands at $1.04 billion, indicating year-over-year growth of 6.7%. In fourth-quarter 2019, revenues totaled $1.20 billion.
Going by segments, the consensus estimate for Research revenues is pegged at $904 million, indicating growth of 9.6% from the prior-year quarter reported figure. The segment is likely to have performed well on the back of additional sales headcount, productivity improvements and the combined effect of improved retention and new business.
The consensus estimate for Consulting revenues is pegged at $94 million, indicating year-over-year growth of 1.1%. Solid performance of labor-based and contract optimization business might have boosted the segment.
The consensus mark for Conferences revenues is pegged at $5.97 million, indicating 89% decrease from the year-ago quarter reported figure. Higher costs related to increased headcount is expected to have weighed on the segment.
Earnings Likely to Decline Year Over Year
Rising expenses and loss from divested operations in 2019 are likely to have weighed on Gartner’s first-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at 33 cents per share, indicating year-over-year decline of 43.1%. In fourth-quarter 2019, adjusted earnings per share were $1.18.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Gartner this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Gartner has an Earnings ESP of -33.74% and a Zacks Rank #3.
Here are a few stocks investors may consider from the broader Zacks Business Services sector, as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings.
Green Dot (GDOT - Free Report) has an Earnings ESP of +3.83% and a Zacks Rank #3. The company is slated to release results on May 11.
ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3. The company is slated to release results on May 5.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Gartner (IT) to Report Q1 Earnings: What's in the Cards?
Gartner, Inc. (IT - Free Report) ) is scheduled to report first-quarter 2020 results on May 7, before market open.
While the company’s top line is likely to have benefited from strength across segments, the bottom line is expected to have been weighed down by rising expenses.
So far this year, shares of Gartner have lost 24.5% compared with 14.3% decline of the industry it belongs to and 12.1% decrease of the Zacks S&P 500 composite.
Let's check out how things have shaped up for the announcement.
Strength Across Segments Growth to Drive Top Line
Strength across Research and Consulting segments is likely to have driven Gartner’s first-quarter 2020 revenues, the Zacks Consensus Estimate for which stands at $1.04 billion, indicating year-over-year growth of 6.7%. In fourth-quarter 2019, revenues totaled $1.20 billion.
Going by segments, the consensus estimate for Research revenues is pegged at $904 million, indicating growth of 9.6% from the prior-year quarter reported figure. The segment is likely to have performed well on the back of additional sales headcount, productivity improvements and the combined effect of improved retention and new business.
The consensus estimate for Consulting revenues is pegged at $94 million, indicating year-over-year growth of 1.1%. Solid performance of labor-based and contract optimization business might have boosted the segment.
The consensus mark for Conferences revenues is pegged at $5.97 million, indicating 89% decrease from the year-ago quarter reported figure. Higher costs related to increased headcount is expected to have weighed on the segment.
Earnings Likely to Decline Year Over Year
Rising expenses and loss from divested operations in 2019 are likely to have weighed on Gartner’s first-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at 33 cents per share, indicating year-over-year decline of 43.1%. In fourth-quarter 2019, adjusted earnings per share were $1.18.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Gartner this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Gartner has an Earnings ESP of -33.74% and a Zacks Rank #3.
Gartner, Inc. Price and EPS Surprise
Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote
Stocks to Consider
Here are a few stocks investors may consider from the broader Zacks Business Services sector, as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings.
ServiceMaster (SERV - Free Report) has an Earnings ESP of +11.24% and a Zacks Rank #3. The company is slated to report results on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Green Dot (GDOT - Free Report) has an Earnings ESP of +3.83% and a Zacks Rank #3. The company is slated to release results on May 11.
ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3. The company is slated to release results on May 5.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>