Research and advisory firm Gartner (NYSE: IT) will be announcing earnings results this Tuesday before market hours. Here’s what to expect.
Gartner beat analysts’ revenue expectations last quarter, reporting revenues of $1.68 billion, flat year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is Gartner a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Gartner’s revenue to decline 2.4% year on year, a reversal from the 2.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Gartner has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Gartner’s peers in the it services & consulting segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Grid Dynamics delivered year-on-year revenue growth of 9.7%, beating analysts’ expectations by 1.4%, and IBM reported revenues up 4.7%, topping estimates by 1.9%. Grid Dynamics traded up 40.1% following the results while IBM’s stock price was unchanged.
Read our full analysis of Grid Dynamics’s results here and IBM’s results here.
Investors in the it services & consulting segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Gartner is up 22.9% during the same time and is heading into earnings with an average analyst price target of $193.77 (compared to the current share price of $230.85).
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