Gartner Inc. (NASDAQ:IT) reported its results for the second quarter. Gartner, Inc is an information technology research and advisory company, which offers independent and objective research and analysis on the information technology, computer hardware, software, communications and related technology industries.
Gartner Earnings Cheat Sheet for the Second Quarter
Results: Net income for the management services company rose to $32.2 million (32 cents per share) vs. $20.1 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 60.2% from the year earlier quarter.
Revenue: Rose 16.3% to $365.5 million from the year earlier quarter.
Actual vs. Wall St. Expectations: IT beat the mean analyst estimate of 31 cents per share. It beat the average revenue estimate of $356.2 million.
Quoting Management: Gene Hall, Gartner’s chief executive officer, commented, “Revenue, contract value, Normalized EBITDA and EPS increased at double-digit rates again in the second quarter, and the growth rate in contract value was the fastest since early 2007. The increases in our revenue and contract value as well as the expansion of key operating metrics such as wallet retention illustrate the value we provide to our clients and the market opportunity for our services.This performance continues our trend of consistent double digit growth to both revenue and earnings.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.2%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 16.4% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 50.4% and in the fourth quarter of the last fiscal year, the figure rose 42.7%.
The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the first quarter and by one cent in the fourth quarter of the last fiscal year.
Gross margins grew 2.3 percentage points to 58.3%. The growth seemed to be driven by increased revenue, as the figure rose 16.3% from the year earlier quarter while costs rose 10.2%.
Competitors to Watch: Forrester Research, Inc. (NASDAQ:FORR), Microsoft Corporation (NASDAQ:MSFT), Google Inc. (NASDAQ:GOOG), Intl. Business Machines Corp. (NYSE:IBM), Nielsen Hldg NV (NYSE:NLSN), Navigant Consulting, Inc. (NYSE:NCI), Information Services Group, Inc. (NASDAQ:III), Harris Interactive Inc. (NASDAQ:HPOL), and Apple Inc. (NASDAQ:AAPL).
(Source: Xignite Financials)