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Gartner (IT) Surpasses Earnings & Revenue Estimates in Q2
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Gartner, Inc. (IT - Free Report) has reported better-than-expected second-quarter 2024 results.
The company’s adjusted earnings (excluding 28 cents from non-recurring items) per share of $3.22 beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion beat the consensus estimate marginally and improved 6.1% year over year.
The IT stock has gained 33.2% over the past year, outperforming the 30% rally of the industry it belongs to and 19.3% growth of the Zacks S&P 500 Composite.
Revenues in the Research segment were $1.3 billion, which increased 4.8% from the year-ago quarter on a reported basis and 5.5% on a foreign-currency-neutral basis. The gross contribution margin was 73.7%, which amounted to a gross contribution of $933 million in the reported quarter.
Conferences’ revenues were $186 million, up 10.2% year over year on a reported basis and 10.8% on a foreign-currency-neutral basis. The gross contribution margin was 58.1%, which logged a gross contribution of $108 million.
Revenues in the Consulting segment amounted to $143 million, which increased 13.1% from the year-ago quarter’s actual on a reported basis and 14.9% on a foreign-currency-neutral basis. The gross contribution margin was 37.6% in the reported quarter, which amounted to a gross contribution of $54 million.
Operating Performance
Adjusted EBITDA of $416 million increased 8.2% from the year-ago quarter on a reported basis and 9.8% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow
Gartner had $1.2 billion in cash and cash equivalents at the end of the quarter, flat with the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the first quarter of 2024.
The operating cash flow totaled $188.8 million and the free cash flow utilized was $69.6 million in the reported quarter. Capital expenditure totaled $6.7 million. The company returned $340 million by repurchasing 800,000 shares.
2024 Outlook
For 2024, total revenues are expected to be atleast$6.2 billion. The Zacks Consensus Estimate is pegged at $6.23 billion.
The company raised the guidance for adjusted earnings per share, which is anticipated to be atleast $11.05 compared with the $10.90 mentioned previously. The consensus estimate for earnings is pegged at $11.63 per share, which is higher than the company’s guidance. The adjusted EBITDA guidance is raised to be atleast $1.46 billion from the $1.455 billion mentioned previously. The free cash flow is anticipated to be atleast $1.080 billion.
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
WM’s adjusted earnings per share were $1.8, which increased 20.5% on a year-over-year basis. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but increased 5.5% from the year-ago quarter.
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Gartner (IT) Surpasses Earnings & Revenue Estimates in Q2
Gartner, Inc. (IT - Free Report) has reported better-than-expected second-quarter 2024 results.
The company’s adjusted earnings (excluding 28 cents from non-recurring items) per share of $3.22 beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion beat the consensus estimate marginally and improved 6.1% year over year.
The IT stock has gained 33.2% over the past year, outperforming the 30% rally of the industry it belongs to and 19.3% growth of the Zacks S&P 500 Composite.
Gartner, Inc. Price and EPS Surprise
Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote
Revenues by Segments
Revenues in the Research segment were $1.3 billion, which increased 4.8% from the year-ago quarter on a reported basis and 5.5% on a foreign-currency-neutral basis. The gross contribution margin was 73.7%, which amounted to a gross contribution of $933 million in the reported quarter.
Conferences’ revenues were $186 million, up 10.2% year over year on a reported basis and 10.8% on a foreign-currency-neutral basis. The gross contribution margin was 58.1%, which logged a gross contribution of $108 million.
Revenues in the Consulting segment amounted to $143 million, which increased 13.1% from the year-ago quarter’s actual on a reported basis and 14.9% on a foreign-currency-neutral basis. The gross contribution margin was 37.6% in the reported quarter, which amounted to a gross contribution of $54 million.
Operating Performance
Adjusted EBITDA of $416 million increased 8.2% from the year-ago quarter on a reported basis and 9.8% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow
Gartner had $1.2 billion in cash and cash equivalents at the end of the quarter, flat with the end of the preceding quarter. The long-term debt was $2.5 billion, flat with the first quarter of 2024.
The operating cash flow totaled $188.8 million and the free cash flow utilized was $69.6 million in the reported quarter. Capital expenditure totaled $6.7 million. The company returned $340 million by repurchasing 800,000 shares.
2024 Outlook
For 2024, total revenues are expected to be atleast$6.2 billion. The Zacks Consensus Estimate is pegged at $6.23 billion.
The company raised the guidance for adjusted earnings per share, which is anticipated to be atleast $11.05 compared with the $10.90 mentioned previously. The consensus estimate for earnings is pegged at $11.63 per share, which is higher than the company’s guidance. The adjusted EBITDA guidance is raised to be atleast $1.46 billion from the $1.455 billion mentioned previously. The free cash flow is anticipated to be atleast $1.080 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
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
Waste Management Inc. (WM - Free Report) reported second-quarter 2024 results.
WM’s adjusted earnings per share were $1.8, which increased 20.5% on a year-over-year basis. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but increased 5.5% from the year-ago quarter.