Gartner, Inc. ThisDriven by its large client base courtesy its high quality research reports, has posted better than expected earnings in all the last four quarters.
Gartner’s first quarter 2023 earnings (excluding 49 cents from non-recurring items) of $2.88 per share beat the Zacks consensus estimate by 41.2% and grew 23.6% year over year. Revenue of $1.41 billion beat consensus estimates by 1.3% and improved 11.6% year over year on a reported basis and 14.3% on a foreign-currency-neutral basis.
Driven by the above-mentioned tailwinds, Gartner has outperformed its industry over the past year, with a 28.5% increase. Industryan increase of 3.5%.
Gartner, Inc. Value
Gartner, Inc. Value , Gartner, Inc. Citation
Current Status of Gartner
Gartner serves a large addressable market, where the quality of reports provided by the company is considered to be comprehensive, objective, and independent. Furthermore, these reports provide users with actionable insights. All these factors make Gartner indispensable for companies operating in various sectors, allowing them to gain a competitive advantage. The company also benefits from low customer concentration which enables operational risks to be minimized as much as possible.
The acquisition of CEB further strengthens Gartner’s market power. Combining the analyst-driven, syndicated research and advisory services of the former with the best practice and talent management insights of the former across a range of business functions is likely to provide a comprehensive and differentiated suite of services portfolio across the globe.
Gartner’s efforts to reward its shareholders are commendable. In 2022, 2021 and 2020, Gartner repurchases 3.8 million, 7.3 million and 1.2 million shares for $1 billion, $1.7 billion and $176.3 million, respectively. Such moves reflect the company’s commitment to creating value for shareholders and underline its confidence in the business.
some related points
Gartner’s global presence exposes it to the risk of foreign exchange fluctuations. The appreciation or depreciation of the US dollar versus foreign currencies affects the Company’s results.
Gartner pegged the current ratio at 0.84 at the end of the first quarter 2023, down from the current ratio of 0.70 reported at the end of the previous year’s quarter. This indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
IT currently carries a Zacks Rank #3 (Hold).
Investor interest in Jax business Services The sector may consider the following stocks:
Green Point gdot: For the second quarter 2023, the Zacks Consensus Estimate for Green Dot’s revenue suggests a decline of 4.5% year-over-year to $339.2 million and for earnings to fall a similar 52.7% to 35 cents per share Is. The company has an impressive earnings surprise history, having beaten the consensus mark in all four past quarters, with an average surprise of 37.3%.
GDOT has a VGM score of A and is currently Zacks Rank #1 (Strong Buy). you can see Full list of today’s Zacks #1 ranked stocks here,
Maximus MMS: For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenue rises 6.1% annually to $1.2 billion and indicates a similar 35.9% rise in earnings to $1.06 per share. The company has an impressive earnings surprise history, surpassing the consensus mark in three instances and missing in one instance, with an average surprise of 9.6%.
MMS has a VGM Score of A with a Zack Rank #2 (Buy).
booz allen Bah: For the fourth quarter of fiscal 2023, the Zacks Consensus Estimate for Booz Allen’s revenue suggests growth of 5.9% year over year to $2.4 billion and for earnings to rise a similar 5.8% to 91 cents per share gives a hint. The company has an impressive earnings surprise history, having beaten the consensus mark in all four past quarters, with an average surprise of 8.7%.
The Zacks rank of BAH is 2.
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Gartner, Inc. (IT): Free Stock Analysis Report
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