Gartner Inc. Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

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

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Gartner Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the management services company rose to $45 million (46 cents per share) vs. $36.7 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 22.7% from the year earlier quarter.

Revenue: Rose 11.9% to $427.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Gartner Inc. fell short of the mean analyst estimate of 47 cents per share. Analysts were expecting revenue of $428.2 million.

Quoting Management: Gene Hall, Gartner’s chief executive officer, commented, “We achieved record levels of new business and contract value, maintained strong client and wallet retention, and many of our other key business metrics continued their strong performance during the fourth quarter. We delivered double-digit revenue, Normalized EBITDA, EPS, and operating cash flow growth for the full year 2011. As we look ahead to 2012, we are excited about the opportunity we see in the market, and we expect to deliver another year of double-digit growth as measured by our key business metrics.”

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 14.5%, with the biggest boost coming in the third quarter when revenue rose 16.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 51.8% and in the second quarter, the figure rose 60.2%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by 3 cents.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached 38 cents per share, up from 37 cents. For the fiscal year, the average estimate has been unchanged at $1.41 a share.

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

Don’t Miss These Additional Hot Stories:

These Retailers Continue to Confuse Investors

Golden Cross Accomplished, Should You Buy?

Is 2012 the Year of the Golden Dragon?

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

More from The Cheat Sheet