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Adjusted earnings (excluding 40 cents from non-recurring items) per share of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
Revenues in the Research segment increased 6% year over year on a reported basis and 5% on a foreign-currency-neutral basis and matched our estimated $1.24 billion. The gross contribution margin was 74%, which came to $921 million in the reported quarter.
Conferences’ revenues gained 14% year over year on a reported basis and 12% on a foreign-currency-neutral basis and matched our estimated $214 million. The gross contribution margin was 50% in the reported quarter, amounting to $108 million.
Revenues in the Consulting segment declined 7% year over year on both reported basis and foreign-currency-neutral basis to $128 million, missing our estimated $133 million. The gross contribution margin was 27% in the reported quarter to $35 million.
Adjusted EBITDA of $386 million decreased 8.3% year over year on a reported basis and 9% on a foreign-currency-neutral basis.
Operating cash flow totaled $224 million while free cash flow was $196 million in the reported quarter. Capital expenditures totaled $28 million.
In 2023, Gartner returned $600 million by repurchasing 1.8 million shares.
2024 Outlook
Total revenues are expected to be $6.24 billion. The Zacks Consensus Estimate is pegged at $6.36 billion. Adjusted earnings per share (EPS) are now anticipated to be $10.55. The consensus estimate is pegged at $12.09 per share. Adjusted EBITDA is projected to be $1.44 billion. Free cash flow is anticipated to be $1.065 billion.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues both beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
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Gartner (IT) Surpasses Q4 Earnings and Revenue Estimates
Gartner, Inc. (IT - Free Report) reported better-than-expected fourth-quarter 2023 results.
Adjusted earnings (excluding 40 cents from non-recurring items) per share of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
Quarterly Numbers in Detail
Revenues in the Research segment increased 6% year over year on a reported basis and 5% on a foreign-currency-neutral basis and matched our estimated $1.24 billion. The gross contribution margin was 74%, which came to $921 million in the reported quarter.
Conferences’ revenues gained 14% year over year on a reported basis and 12% on a foreign-currency-neutral basis and matched our estimated $214 million. The gross contribution margin was 50% in the reported quarter, amounting to $108 million.
Revenues in the Consulting segment declined 7% year over year on both reported basis and foreign-currency-neutral basis to $128 million, missing our estimated $133 million. The gross contribution margin was 27% in the reported quarter to $35 million.
Adjusted EBITDA of $386 million decreased 8.3% year over year on a reported basis and 9% on a foreign-currency-neutral basis.
Operating cash flow totaled $224 million while free cash flow was $196 million in the reported quarter. Capital expenditures totaled $28 million.
In 2023, Gartner returned $600 million by repurchasing 1.8 million shares.
2024 Outlook
Total revenues are expected to be $6.24 billion. The Zacks Consensus Estimate is pegged at $6.36 billion. Adjusted earnings per share (EPS) are now anticipated to be $10.55. The consensus estimate is pegged at $12.09 per share. Adjusted EBITDA is projected to be $1.44 billion. Free cash flow is anticipated to be $1.065 billion.
Currently, Gartner carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues both beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.