Gartner posts higher 2Q earnings, revenue

Gartner reports higher 2Q earnings, revenue but profit outlook falls short of estimates

Associated Press

STAMFORD, Conn. (AP) -- Gartner Inc. posted a 12 percent jump in second-quarter net income Friday, helped by higher revenue from its research, consulting and events services.

But the company's earnings and profit outlook for the year fell short of Wall Street's expectations, sending shares nearly 6 percent lower.

Gartner earned $46.5 million, or 49 cents per share, in the April-June period. That's up 12 percent from $41.5 million, or 43 cents per share, in the same period a year earlier. The latest quarter's results included acquisition-related charges. Without this, Gartner earned 50 cents per share.

Revenue rose 12 percent to $446 million from $397 million.

Analysts, on average, had expected earnings of 52 cents per share on revenue of $442.5 million, according to a poll by FactSet.

CEO Gene Hall said that despite a "mixed economic environment," Gartner saw robust demand for its services during the quarter.

For the full year, the company is forecasting earnings of $1.90 to $2.04 per share on revenue of $1.76 billion to $1.81 billion. Analysts were forecasting earnings of $2.05 per share revenue of $1.8 billion.

Gartner's shares fell $3.54, or 5.7 percent, to $58.54 in midday trading. The stock has traded in the 52-week range of $42.81 and $63 in the past 52 weeks.

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