Gartner Inc. Earnings: Margins Keep Growing, Net Income Climbs

Gartner Inc. (NYSE:IT) reported its results for the first quarter. Gartner 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.

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Gartner Earnings Cheat Sheet for the First Quarter

Results: Net income for Gartner Inc. rose to $34.2 million (36 cents per share) vs. $29.2 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 17.2% from the year-earlier quarter.

Revenue: Rose 12% to $369.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gartner Inc. beat the mean analyst estimate of 35 cents per share. Analysts were expecting revenue of $364.4 million.

Quoting Management: Gene Hall, Gartner’s chief executive officer, commented, “We continue to consistently deliver double-digit growth in revenue, contract value, Normalized EBITDA and EPS, which puts us in an excellent position to deliver on our full year growth targets.”

Key Stats:

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 13.7%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 16.8% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 22.7% and in the third quarter of the last fiscal year, the figure rose 51.8%.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 46 cents versus a mean estimate of net income of 47 cents per share.

Looking Forward: The average estimate for the second quarter remains unchanged at 42 cents a share. At $1.72 per share, the average estimate for the fiscal year has fallen from $1.74 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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