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Gartner Earnings Outpace Estimates in Q4, Revenues Increase Y/Y
ITGartner(IT) ZACKS·2025-02-04 18:10

Core Insights - Gartner, Inc. reported better-than-expected fourth-quarter 2024 results with adjusted earnings per share of 5.6,beatingtheZacksConsensusEstimateby69.35.6, beating the Zacks Consensus Estimate by 69.3% and increasing 79.3% year-over-year [2] - Revenues reached 1.7 billion, surpassing the consensus estimate by 1.8% and improving 8.1% year-over-year [2] - The stock has gained 16.6% over the past year, outperforming the industry average of 7.8% [2] Revenue Breakdown - Research segment revenues were 1.3billion,growing5.41.3 billion, growing 5.4% year-over-year on a reported basis and 5.7% on a foreign-currency-neutral basis, with a gross contribution margin of 74.1% [3] - Conference revenues amounted to 251 million, increasing 17.2% year-over-year on a reported basis and 17.1% on a foreign-currency-neutral basis, with a gross contribution margin of 47.6% [4] - Consulting segment revenues were 153million,up19.3153 million, up 19.3% year-over-year on a reported basis and 19.2% on a foreign-currency-neutral basis, with a gross contribution margin of 35.1% [5] Operating Performance - Adjusted EBITDA for the quarter was 417 million, reflecting an 8% increase year-over-year on a reported basis and 8.9% on a foreign-currency-neutral basis [6] Balance Sheet & Cash Flow - At the end of the quarter, Gartner had 1.9billionincashandcashequivalents,upfrom1.9 billion in cash and cash equivalents, up from 1.8 billion in the previous quarter, with long-term debt remaining flat at 2.5billion[7]−Operatingcashflowtotaled2.5 billion [7] - Operating cash flow totaled 335.4 million, while free cash flow utilized was 110.2million,withcapitalexpenditureat110.2 million, with capital expenditure at 8.1 million [7] 2025 Outlook - For 2025, Gartner raised its total revenue guidance to at least 6.55billion,comparedtothepreviousestimateof6.55 billion, compared to the previous estimate of 6.23 billion, although this is lower than the Zacks Consensus Estimate of 6.73billion[8]−Theadjustedearningspershareguidancewasloweredtoatleast6.73 billion [8] - The adjusted earnings per share guidance was lowered to at least 11.45 from 11.75,whichisalsobelowtheZacksConsensusEstimateof11.75, which is also below the Zacks Consensus Estimate of 13.21 [8] - Adjusted EBITDA guidance was reduced to at least 1.51billionfrom1.51 billion from 1.52 billion, and free cash flow guidance was lowered to at least 1.14billionfrom1.14 billion from 1.35 billion [9]