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Gartner (IT) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

Gartner, Inc. IT) is scheduled to report third-quarter 2019 results on Oct 31, before market open.

While the company’s top line is likely to have benefited from solid segmental performance, the bottom line is expected to have been weighed by rising expenses.

So far this year, shares of Gartner have gained 13% compared with 25.2% rise of the industry it belongs to and 18.7% increase of the Zacks S&P 500 composite.

 

Let's check out how things are shaping up for the announcement.

Segmental Growth to Drive Top Line

Strength across all the segments — Research, Conferences, and Consulting — is likely to have driven Gartner’s third-quarter 2019 revenues, the Zacks Consensus Estimate for which stands at $987.83 million, indicating year-over-year growth of 7.2%. In second-quarter 2019, revenues of $1.07 billion improved 7% year over year.

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Going by segments, the consensus estimate for Research revenues is pegged at $842 million, indicating growth of 8.8% from the prior-year quarter reported figure. The segment is likely to have performed well on the back of additional sales headcount, productivity improvements and the combined effect of improved retention and new business.

The consensus mark for Conferences revenues is pegged at $65 million, indicating 14% increase from the year-ago quarter reported figure. Multiple investments made in support of the conference business is expected to have aided the segment.

The consensus estimate for Consulting revenues is pegged at $86 million, indicating year-over-year growth of 8.9%. Solid performance of labor-based and contract optimization business might have boosted the segment.

Gartner, Inc. Revenue (TTM)

 

Gartner, Inc. Revenue (TTM)
Gartner, Inc. Revenue (TTM)

Gartner, Inc. revenue-ttm | Gartner, Inc. Quote

Earnings Likely to Decline Year Over Year

Rising expenses are likely to have weighed on Gartner’s third-quarter 2019 earnings, the Zacks Consensus Estimate for which is pegged at 45 cents per share, indicating year-over-yeardecline of 47.1%. Notably, the consensus estimate is in line with the higher end of the guided adjusted EPS range of 40-45 cents per share. In second-quarter 2019, adjusted earnings per share of $1.45 increased 41% year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Gartner this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Gartner has an Earnings ESP of 0.00% and a Zacks Rank #1.

Gartner, Inc. Price and EPS Surprise

 

Gartner, Inc. Price and EPS Surprise
Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on third-quarter 2019 earnings:

Verisk VRSK has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

WEX Inc. WEX has an Earnings ESP of +1.24% and a Zacks Rank #3. The company is slated to report results on Oct 31.

Fidelity National Information Services, Inc. FIS has an Earnings ESP of +0.13% and a Zacks Rank #3. The company is slated to release results on Nov 5.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
 
Gartner, Inc. (IT) : Free Stock Analysis Report
 
WEX Inc. (WEX) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
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Zacks Investment Research