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With a market cap of $37.7 billion, Gartner, Inc. (IT) is a globally recognized leader in information technology research and advisory services, providing valuable insights and expertise to help organizations make informed decisions. With a strong focus on research, consulting, and conferences, Gartner supports businesses across industries with innovative solutions tailored to enhance efficiency, drive growth, and navigate complex technology landscapes. It is set to unveil its fiscal Q4 earnings results on Tuesday, Feb. 4.
Ahead of this event, analysts expect the technology information and analysis company to report a profit of $3.23 per share, up 6.3% from $3.04 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, IT exceeded the consensus EPS estimate by a margin of 2%.
For fiscal 2024, analysts expect the Stamford, Connecticut-based company to report EPS of $11.87, up 4.8% from $11.33 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 12.5% year-over-year to $13.35.
IT has underperformed the broader markets over the past 52 weeks, with shares up 7.4%, compared to the S&P 500 Index's ($SPX) 21.2% gain and the Technology Select Sector SPDR Fund's (XLK) 17.6% return over the same period.
Shares of Gartner rose 1.7% on Nov. 5 due to the company’s better-than-expected Q3 2024 earnings results. Adjusted earnings per share of $2.50 exceeded the consensus estimate while revenues of $1.5 billion also surpassed estimates and reflected a 5.4% year-over-year growth. Strong performance in the Research segment, which contributed $1.3 billion in revenue with a robust gross contribution margin of 73.7%, played a key role in boosting investor confidence. Additionally, Gartner raised its full-year 2024 guidance for adjusted EPS to at least $11.75, adjusted EBITDA to $1.5 billion, and free cash flow to $1.4 billion, signaling strong growth prospects.
Analysts' consensus rating on IT stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 10 analysts covering the stock, opinions include five "Strong Buys,” four "Holds," and one Strong Sell.” This configuration is slightly more bullish than three months ago, with four "Strong Buys.” As of writing, IT is trading below the average analyst price target of $546.55.
