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Gartner (IT) Q2 Earnings Beat Estimates, 2022 EPS Guidance Up

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Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter 2022 results, wherein earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings (excluding 32 cents from non-recurring items) per share of $2.85 beat the consensus mark by 33.2% and increased 27.2% year over year. Revenues of $1.38 billion beat the consensus estimate by 4.4% and improved 17.9% year over year on a reported basis and 21.8% on a foreign-currency-neutral basis.

Total contract value was $4.3 billion, up 15.4% year over year on a foreign-currency-neutral basis.

Over the past year, shares of Gartner have lost 8.4% compared with 3.6% decline of the industry it belongs to.

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Quarterly Numbers in Detail

Revenues at the Research segment increased 13.9% year over year on a reported basis and 17.3% on a foreign-currency-neutral basis to $1.14 billion. Gross contribution margin was 73.9% in the reported quarter.

Revenues at the Conferences segment surged 95.1% year over year on a reported basis and 102.2% on a foreign-currency-neutral basis to $114 million. Gross contribution margin dropped to 64.8% in the reported quarter.

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote

Revenues at the Consulting segment grew 13.9% year over year on a reported basis and 20.5% on a foreign-currency-neutral basis to $121 million. Gross contribution margin was 41.6% in the reported quarter.

Adjusted EBITDA of $389 million improved 9.5% year over year on a reported basis and 14.2% on a foreign-currency-neutral basis.

Operating cash flow totaled $416 million while free cash flow was $395 million in the reported quarter. Capital expenditures totaled $21 million. Gartner repurchased 1.8 million common shares for $479 million.

2022 View

Adjusted EPS is anticipated to be $8.85 (previous view: $7.80). The current Zacks Consensus Estimate of $8.08 lies below the guidance.

Adjusted EBITDA is projected to be $1.235 billion (previous view: $1.14 billion). Free cash flow is anticipated to be 985 million (previous view: $930 million).

Currently, Gartner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performances of Some Other Business Services Companies

Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
 


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