Advertisement
Canada markets closed
  • S&P/TSX

    21,961.55
    +74.21 (+0.34%)
     
  • S&P 500

    5,421.03
    +45.71 (+0.85%)
     
  • DOW

    38,712.21
    -35.21 (-0.09%)
     
  • CAD/USD

    0.7287
    +0.0017 (+0.23%)
     
  • CRUDE OIL

    78.35
    +0.45 (+0.58%)
     
  • Bitcoin CAD

    93,479.47
    +1,166.84 (+1.26%)
     
  • CMC Crypto 200

    1,405.68
    +10.64 (+0.76%)
     
  • GOLD FUTURES

    2,339.10
    +12.50 (+0.54%)
     
  • RUSSELL 2000

    2,057.10
    +32.75 (+1.62%)
     
  • 10-Yr Bond

    4.2950
    -0.1090 (-2.48%)
     
  • NASDAQ

    17,608.44
    +264.89 (+1.53%)
     
  • VOLATILITY

    12.04
    -0.81 (-6.30%)
     
  • FTSE

    8,215.48
    +67.67 (+0.83%)
     
  • NIKKEI 225

    38,876.71
    -258.08 (-0.66%)
     
  • CAD/EUR

    0.6739
    -0.0025 (-0.37%)
     

Gartner (IT) Q1 Earnings and Revenues Surpass Estimates

Gartner, Inc. IT reported better-than-expected first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings (excluding 49 cents from non-recurring items) per share of $2.88 beat the Zacks Consensus Estimate by 41.2% and increased 23.6% year over year. Revenues of $1.41 billion beat the Zacks Consensus Estimate by 1.3% and improved 11.6% year over year on a reported basis and 14.3% on a foreign-currency-neutral basis.

The total contract value was $4.5 billion, up 10.4% year over year on a foreign-currency-neutral basis.

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. Price, Consensus and EPS Surprise
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 7.1% year over year on a reported basis and 9.5% on a foreign-currency-neutral basis to $1.22 billion. The gross contribution margin was 73.9% in the reported quarter.

ADVERTISEMENT

The Conferences segment’s revenues surged more than 100% year over year on a reported basis as well as on a foreign-currency-neutral basis to $64.6 million. The gross contribution margin was 41.4% in the reported quarter.

Revenues in Consulting segment grew 9.5% year over year on a reported basis and 14.1% on a foreign-currency-neutral basis to $127 million. The gross contribution margin was 40% in the reported quarter.

Adjusted EBITDA of $379 million improved 15.3% year over year on a reported basis and 19.1% on a foreign-currency-neutral basis.

Operating cash flow totaled $165 million while free cash flow was $144 million in the reported quarter. Capital expenditures totaled $21 million. Gartner repurchased $107 million worth of common shares.

2023 Outlook

Adjusted EPS is anticipated to be $9.50. The current Zacks Consensus Estimate for adjusted EPS is $9.49.

Adjusted EBITDA is projected to be $1.33 billion. Free cash flow is anticipated to be $920 million.

Gartner currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Snapshot

Equifax EFX reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom OMC reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv FISV reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Fiserv, Inc. (FISV) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Gartner, Inc. (IT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research