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Based in Stamford, Connecticut, Gartner, Inc. (IT) is a leading information technology research and advisory firm. With a market cap of $35.5 billion, the company operates in the research, consulting, and conferences sectors, providing expert insights and services to clients globally. The company is expected to unveil its fiscal Q2 earnings results before the market opens on Tuesday, Jul. 30.
Before the upcoming earnings report, analysts forecast IT to post a profit of $3.04 per share, a 6.7% increase from $2.85 per share in the same quarter last year. The company has consistently outperformed Wall Street's bottom-line projections in each of the past four quarters. IT reported an EPS of $2.93 in the most recent quarter, surpassing the consensus EPS estimate by a margin of 16.3% due to steady demand for IT services.
For fiscal 2024, analysts expect IT to report EPS of $11.63, up 2.7% from $11.33 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 11.4% annually to $12.95.
Over the past 52 weeks, IT surged 27.5%, outperforming the broader S&P 500 Index's ($SPX) 19.2% rise and the S&P 500 Technology Sector SPDR's (XLK) 22.4% gain over the same period.
In February, Gartner's shares experienced a dip following its Q4 earnings release, primarily due to a 2024 forecast falling short of analysts' expectations. The decline was further compounded by the consulting unit's first revenue decline in 2023 and broader concerns about reduced client spending amid economic uncertainty. In addition, despite surpassing Q1 profit estimates, the stock saw an 8% decline on Apr. 30 due to the company's downward revision of its annual revenue forecast and modest gains in key business segments, which raised concerns about future growth prospects.
Analysts' consensus rating on Gartner stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 11 analysts covering the stock, opinions include six "Strong Buys" and five "Holds." This configuration has remained the same over the past three months.
The average analyst price target for IT is $464.10, suggesting a modest potential upside of only 1.5% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
