Gartner, Inc. Third Quarter Earnings Sneak Peek

Gartner, Inc. (NYSE:IT) will unveil its latest earnings on Friday, November 2, 2012. 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.

Gartner, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 34 cents per share, a rise of 9.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 35 cents during the last month. Analysts are projecting profit to rise by 22.5% versus last year to $1.74.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 4 cents, reporting profit of 45 cents per share against a mean estimate of net income of 41 cents. In the first quarter, the company exceeded forecasts by one cent with profit of 36 cents versus a mean estimate of net income of 35 cents.

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A Look Back: In the second quarter, profit rose 28.7% to $41.5 million (43 cents a share) from $32.2 million (32 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.7% to $397.5 million from $365.5 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 9.1% in revenue from the year-earlier quarter to $377.3 million.

Stock Price Performance: Between August 31, 2012 and October 29, 2012, the stock price had fallen $3.86 (-7.8%), from $49.39 to $45.53. The stock price saw one of its best stretches over the last year between April 24, 2012 and May 2, 2012, when shares rose for seven straight days, increasing 7.2% (+$3.01) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 7.3% (-$3.62) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 22.7% in the fourth quarter of the last fiscal year and 17.2% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 16.8% in the third quarter of the last fiscal year, 11.9% in the fourth quarter of the last fiscal year and 12% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with four of seven analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.76 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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