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Why Is Gartner (IT) Up 1.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Gartner has reported better-than-expected first-quarter 2024 results.
The company’s adjusted earnings (excluding 26 cents from non-recurring items) per share of $2.9 beat the Zacks Consensus Estimate by 16.3% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 4.5% year over year.
Quarterly Numbers in Detail
Revenues in the Research segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the reported quarter.
Conferences’ revenues were $70 million, up 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2% which totaled to a gross contribution of $23 million.
Revenues in the Consulting segment amounted to $135 million, which grew 6% from the year-ago quarter on both reported basis and 6.9% on foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter which amounted to a gross contribution of $54 million.
Adjusted EBITDA of $382 million increased marginally from the year-ago quarter on a reported basis and 1.7% on a foreign-currency-neutral basis.
The operating cash flow totaled $189 million and the free cash flow was $166 million in the reported quarter. Capital expenditure totaled $23 million.
The company had returned $225 million by repurchasing 500,000 shares.
2024 Outlook
Adjusted earnings per share are anticipated to be $10.90. Adjusted EBITDA is projected to be $1.455 billion. The free cash flow is anticipated to be $1.080 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Gartner has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Gartner (IT) Up 1.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Gartner (IT - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gartner due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Gartner (IT - Free Report) Surpasses Q1 Earnings and Revenue Estimates
Gartner has reported better-than-expected first-quarter 2024 results.
The company’s adjusted earnings (excluding 26 cents from non-recurring items) per share of $2.9 beat the Zacks Consensus Estimate by 16.3% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 4.5% year over year.
Quarterly Numbers in Detail
Revenues in the Research segment were $1.3 billion, which increased 4.2% from the year-ago quarter on a reported basis and 4.1% on a foreign-currency-neutral basis. The gross contribution margin was 74.5%, which amounted to a gross contribution of $945 million in the reported quarter.
Conferences’ revenues were $70 million, up 8.4% year over year on a reported basis and 8.5% on a foreign-currency-neutral basis. The gross contribution margin was 33.2% which totaled to a gross contribution of $23 million.
Revenues in the Consulting segment amounted to $135 million, which grew 6% from the year-ago quarter on both reported basis and 6.9% on foreign-currency-neutral basis. The gross contribution margin was 40.3% in the reported quarter which amounted to a gross contribution of $54 million.
Adjusted EBITDA of $382 million increased marginally from the year-ago quarter on a reported basis and 1.7% on a foreign-currency-neutral basis.
The operating cash flow totaled $189 million and the free cash flow was $166 million in the reported quarter. Capital expenditure totaled $23 million.
The company had returned $225 million by repurchasing 500,000 shares.
2024 Outlook
Adjusted earnings per share are anticipated to be $10.90. Adjusted EBITDA is projected to be $1.455 billion. The free cash flow is anticipated to be $1.080 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Gartner has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gartner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.