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Valued at a market cap of $41.1 billion, Gartner, Inc. (IT) is a research and advisory company offering rich domain expertise and technology-related insight necessary for informed decision-making. The Stamford, Connecticut-based company is expected to announce its fiscal Q3 earnings results on Friday, Nov. 1.
Ahead of this event, analysts project the management consulting company to report a profit of $2.45 per share, down 4.3% from $2.56 per share in the year-ago quarter. The company has consistently beaten Wall Street's bottom-line estimates in the last four quarters.
Its adjusted earnings of $3.22 per share in Q2 topped the consensus estimates by 6.3%. The company benefited from an increase in revenues across all of its segments and high single-digit growth in its contract values.
For fiscal 2024, analysts expect IT to report an EPS of $11.65, up 2.8% from $11.33 in fiscal 2023. Moreover, EPS is expected to increase nearly 13% year over year to $13.16 in fiscal 2025.
Shares of IT have gained 17.7% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 22.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 19.2% return over the same period.
On Jul. 30, IT shares jumped 5.9% following its better-than-expected Q2 earnings release. The company reported a 6.1% year-over-year revenue increase to $1.6 billion and a 13% annual rise in adjusted EPS to $3.22. Gartner’s raised full-year 2024 adjusted EPS guidance and $340 million worth of share repurchase during the quarter might have further enhanced investor confidence.
Analysts' consensus view on Gartner’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 10 analysts covering the stock, four recommend a "Strong Buy," five suggest a "Hold," and one indicates a “Strong Sell.” This configuration is less bullish than three months ago, with five analysts suggesting a "Strong Buy."
As of writing, the company is trading above its mean price target of $524.55.
On the date of publication, Neharika Jain 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.
