Gartner (IT) Q4 Earnings And Revenues Surpass Estimates
Zacks Investment Research | Feb 04, 2020 04:15AM ET
Gartner, Inc. (NYSE: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.
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.
Get The News You Want
Zacks Rank & Upcoming Releases
Currently, Gartner carries a Zacks Rank #4 (Sell).
You can see .
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like S&P Global (NYSE:SPGI) , Genpact (NYSE:G) and FLEETCOR Technologies (NYSE: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.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.