Gartner (IT) Q3 Earnings and Revenues Top Estimates

Core Viewpoint - Gartner reported quarterly earnings of $2.50 per share, exceeding the Zacks Consensus Estimate of $2.45 per share, but down from $2.56 per share a year ago, indicating a 2.04% earnings surprise [1] - The company posted revenues of $1.48 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.71% and showing a year-over-year increase from $1.41 billion [2] Earnings Performance - Over the last four quarters, Gartner has surpassed consensus EPS estimates four times, demonstrating consistent performance [2] - The company had an earnings surprise of 6.27% in the previous quarter, with actual earnings of $3.22 per share compared to an expected $3.03 [1][2] Stock Movement and Outlook - Gartner shares have increased by approximately 12% since the beginning of the year, while the S&P 500 has gained 19.8%, indicating underperformance relative to the broader market [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Future Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $3.05, with expected revenues of $1.69 billion, and for the current fiscal year, the estimate is $11.65 on revenues of $6.23 billion [7] - The trend for estimate revisions ahead of the earnings release was favorable, contributing to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Consulting Services industry, to which Gartner belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]