STAMFORD, Conn. - Gartner , Inc. (NYSE: NYSE:IT) has outpaced analyst estimates with its second quarter earnings, reporting an adjusted EPS of $3.22, which is $0.19 higher than the consensus of $3.03.
The company's revenue also exceeded expectations, coming in at $1.6 billion against the predicted $1.59 billion. IT shares were trading flat premarket Tuesday.
In comparison to the same period last year, the company's contract value saw a 7.4% increase on a foreign exchange neutral basis, reaching $4.9 billion. Revenue growth was reported at 6.1% as reported, or 6.9% FX neutral, and net income increased by 15.9% to $230 million. The adjusted EBITDA also saw an 8.2% rise, reaching $416 million, or 9.8% FX neutral. These results reflect a robust performance, with the company's diluted EPS growing by 18.1%.
Gartner's CEO, Gene Hall, commented on the results: "Contract value in the second quarter grew high single digits, accelerating from Q1. Revenue, Adjusted EBITDA, and Adjusted EPS were ahead of expectations. We remain well-positioned to drive long-term, sustained, double-digit growth built on delivering actionable, objective insight to help our clients address their mission-critical priorities."
However, the company's operating cash flow and free cash flow experienced declines of 15.1% and 17.0% respectively. Despite this, Gartner's Board of Directors has increased the share repurchase authorization by $600 million in July 2024, signaling confidence in the company's financial health.
Looking ahead, Gartner provided guidance for the full year 2024, expecting revenue to be at or above $6.20 billion, slightly below the analyst consensus of $6.23 billion. The forecast for adjusted EPS is at or above $11.05, which is lower than the consensus estimate of $11.63.
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