U.S. Markets open in 2 mins

Gartner (IT) Q4 Earnings and Revenues Surpass Estimates

Zacks Equity Research

Gartner, Inc. IT reported solid fourth-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $1.18 beat the consensus mark by 43.9% but decreased 2% on a year-over-year basis.

Revenues of $1.20 billion outpaced the consensus estimate by 0.4% and improved 11% year over year on a reported basis and on a foreign currency-neutral basis. Adjusted revenues also improved 11% year over year on a reported basis and on a foreign currency-neutral basis.

Total contract value was $3.4 billion, up 12% year over year on a foreign currency-neutral basis.

Over the past year, shares of Gartner have gained 14.4% compared with 25.7% growth of the industry it belongs to and 18.4% increase of the Zacks S&P 500 composite.

 

Quarterly Numbers in Detail

Revenues at the Research segment increased 11% year over year on a reported basis and on a foreign currency-neutral basis to $882 million. Gross contribution margin was 70% in the reported quarter.

Revenues at the Conferences segment increased 11% year over year on a reported basis and 12% on a foreign currency-neutral basis to $217 million. Gross contribution margin was 53%.

Revenues at the Consulting segment grew 9% year over year on a reported basis and on a foreign currency-neutral basis to $104 million. Gross contribution margin was 28% in the reported quarter.

Adjusted EBITDA of $218 million improved 3% year over year on a reported basis and 5% on a foreign currency-neutral basis.

Operating cash flow totaled $83 million and free cash flow was $40 million in the reported quarter. Capital expenditures totaled $53 million.

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. Price, Consensus and EPS Surprise

Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote

 

2020 View

Gartner unveiled its full-year 2020 guidance. The company expects revenues to register approximately 9% growth on a foreign currency-neutral basis.

Adjusted EPS is anticipated to be roughly $4.06. The current Zacks Consensus Estimate of $4.04 lies below the expectation.

Adjusted EBITDA margin is projected to register at least 16.1% growth or above. Operating cash flow is anticipated to be approximately $627 million and free cash flow is expected to be roughly $505 million.

Zacks Rank & Upcoming Releases

Currently, Gartner carries a Zacks Rank #4 (Sell).

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

Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like S&P Global SPGI, Genpact G and FLEETCOR Technologies FLT, each scheduled to release results on Feb 6.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention.