Gartner Beats Market Expectations in Third Quarter of 2024

Gartner, Inc. (NYSE: IT) reported promising results for the third quarter of 2024, showing casing solid financial growth across various metrics.

Technology research and consulting company Gartner (NYSE:IT) announced its third quarter 2024 results, with multiple financial indicators achieving strong growth.

This quarter, Gartner’s revenue reached US$1.5 billion, a year-on-year increase of 5.4% based on the reporting basis, and an increase of 5.6% after excluding the impact of foreign exchange rate changes.

The company’s net profit soared to US$415 million, a 130.6% increase from the same period last year. This outstanding growth is also reflected in diluted earnings per share, which was US$5.32 per share in the current quarter, an increase of 135.4% compared with the same period last year.

In addition, Gartner’s third-quarter operating cash flow increased by 78.5% to US$591 million, and free cash flow increased by 86.8% to US$565 million. The company said these gains were driven by its strong customer value proposition and broad addressable market, which will lay the foundation for its continued long-term growth.

The adjusted profit before interest, taxes, depreciation and amortization in this quarter was US$340 million, an increase of 2.1% on a reported basis, and an increase of 2.8% after excluding the impact of changes in foreign exchange rates. However, adjusted earnings per share fell slightly by 2.3% to $2.50, indicating that the company faces some challenges in maintaining adjusted earnings growth.

In terms of business, Gartner’s research and conference business revenue increased by 5.1% and 32.5% respectively in the third quarter. However, consulting business revenue fell slightly by 3.9%. Nonetheless, Gartner's overall third-quarter results demonstrated resilience and adaptability in a dynamic market environment.

In the third quarter, technology research and advisory company Gartner (NYSE:IT) reported strong financial results that exceeded Wall Street analysts’ expectations.

Analysts had expected Gartner’s third-quarter earnings per share to be $2.37 and revenue to be $1.48 billion. However, the company reported earnings of $5.32 per share and revenue of $1.5 billion, both exceeding expectations.

Among them, earnings per share significantly exceeded expectations, mainly due to the company's insurance proceeds of US$300 million due to event cancellations, which offset other expenses and boosted net profit.

Although revenue was slightly higher than expected, Gartner's adjusted earnings per share in the third quarter were $2.50, a decrease of 2.3% from $2.56 in the same period last year. The difference suggests that non-recurring items, such as insurance gains, impacted the company's reported earnings.

Despite the decline in adjusted earnings per share, Gartner's overall financial position remains strong thanks to strong cash flow and net profit growth.

The company's ability to beat revenue expectations in the third quarter highlights its effective strategy and market positioning to achieve growth even in a challenging economic environment. Gartner's third-quarter performance demonstrates its resilience and ability to navigate uncertainty to maintain a competitive edge in the industry.

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Looking ahead, technology research and consulting company Gartner (NYSE:IT) has announced its full-year financial outlook for 2024. It is confident in its strategic direction and market opportunities and is expected to continue to achieve growth.

Looking forward, the company expects that its compelling customer value proposition and broad addressable market will continue to drive its growth. Gartner Chairman and CEO Gene Hall highlighted the company's path to sustained double-digit growth over the long term, noting high-single-digit contract value growth in the third quarter, which bodes well for future performance.

Gartner's guidance for the remainder of the year indicates that they will focus on maintaining revenue growth while addressing challenges that may impact adjusted earnings growth.

The company remains optimistic that it can achieve its long-term goals and leverage its strong market position and innovative products to seize new opportunities. Gartner's strategic initiatives and investments in research and development are expected to be critical to driving future growth and enhancing competitive advantage.

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