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Gartner (IT) Q3 Earnings and Revenues Top Estimates, View Up
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Gartner, Inc.(IT - Free Report) reported better-than-expected third-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.03 beat the consensus mark by 23% and increased more than 100% year over year. Revenues of $1.16 billion beat the consensus estimate by 2.2% and improved 16.3% year over year on a reported basis and 15% on a foreign currency-neutral basis.
Total contract value was $4 billion, up 13.8% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 105%, outperforming the 40.6% growth of the industry it belongs to and 23.9% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 16.2% year over year on a reported basis and 14.8% on a foreign currency-neutral basis, to $1.04 billion. Gross contribution margin was 74.2% in the reported quarter.
Revenues at the Conferences segment grew 91.7% year over year on a reported basis and 93.2% on a foreign currency-neutral basis, to $24 million. Gross contribution margin was 46.9% in the reported quarter.
Revenues at the Consulting segment grew 6.3% year over year on a reported basis and 5.7% on a foreign currency-neutral basis, to $95 million. Gross contribution margin was 32.7% in the reported quarter.
Adjusted EBITDA of $305 million improved 82.3% year over year on a reported basis and 79.9% on a foreign currency-neutral basis.
Operating cash flow totaled $345 million and free cash flow was $331 million in the reported quarter. Capital expenditures totaled $14 million. The company repurchased 1.3 million common shares for $355 million.
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.66 billion compared with the prior guidance of $4.57 billion. The current Zacks Consensus Estimate of $4.62 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $8.54 compared with the prior guidance of $7.60. The current Zacks Consensus Estimate of $7.83 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.26 billion compared with the prior guidance of $1.16 billion. Free cash flow is now anticipated to be $1.23 billion compared with the prior guidance of $1.13 billion.
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Gartner (IT) Q3 Earnings and Revenues Top Estimates, View Up
Gartner, Inc.(IT - Free Report) reported better-than-expected third-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.03 beat the consensus mark by 23% and increased more than 100% year over year. Revenues of $1.16 billion beat the consensus estimate by 2.2% and improved 16.3% year over year on a reported basis and 15% on a foreign currency-neutral basis.
Total contract value was $4 billion, up 13.8% year over year on a foreign currency-neutral basis.
So far this year, shares of Gartner have gained 105%, outperforming the 40.6% growth of the industry it belongs to and 23.9% increase of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Quarterly Numbers in Detail
Revenues at the Research segment increased 16.2% year over year on a reported basis and 14.8% on a foreign currency-neutral basis, to $1.04 billion. Gross contribution margin was 74.2% in the reported quarter.
Revenues at the Conferences segment grew 91.7% year over year on a reported basis and 93.2% on a foreign currency-neutral basis, to $24 million. Gross contribution margin was 46.9% in the reported quarter.
Revenues at the Consulting segment grew 6.3% year over year on a reported basis and 5.7% on a foreign currency-neutral basis, to $95 million. Gross contribution margin was 32.7% in the reported quarter.
Adjusted EBITDA of $305 million improved 82.3% year over year on a reported basis and 79.9% on a foreign currency-neutral basis.
Operating cash flow totaled $345 million and free cash flow was $331 million in the reported quarter. Capital expenditures totaled $14 million. The company repurchased 1.3 million common shares for $355 million.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
2021 View
Gartner raised its full-year 2021 guidance. The company now expects total revenues to be $4.66 billion compared with the prior guidance of $4.57 billion. The current Zacks Consensus Estimate of $4.62 billion lies below the updated guidance.
Adjusted EPS is now anticipated to be $8.54 compared with the prior guidance of $7.60. The current Zacks Consensus Estimate of $7.83 lies below the updated guidance.
Adjusted EBITDA is now projected to be $1.26 billion compared with the prior guidance of $1.16 billion. Free cash flow is now anticipated to be $1.23 billion compared with the prior guidance of $1.13 billion.
Currently, Gartner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.