Gartner, Inc. (IT) Tops Q4 EPS by 37c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

Gartner, Inc. (NYSE: IT) reported Q4 EPS of $1.18, $0.37 better than the analyst estimate of $0.81. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.19 billion.

FOURTH QUARTER 2019 HIGHLIGHTS

• Revenues: $1.2 billion, +11%; +11% FX neutral. Adjusted revenues: +11%, +11% FX neutral.
• Net income: $68 million; adjusted EBITDA: $218 million, +3%, +5% FX neutral.
• Diluted EPS: $0.75, -18%; adjusted EPS: $1.18, -2%.
• Operating cash flow: $83 million; free cash flow: $40 million, >100%.

Gene Hall, Gartner’s Chief Executive Officer, commented, “2019 was another year of double-digit contract value and revenue growth for Gartner. We will continue to leverage the Gartner Formula for Growth and our compelling client value proposition to capture our enormous market opportunity."

GUIDANCE:

Gartner, Inc. sees FY2020 EPS of $4.06, versus the consensus of $4.01.

The Company projects the following full year financial results:

• Revenues: Increase of ~ 9% FX neutral.
• Net income Margin: ≥ 5.4%; Adjusted EBITDA Margin ≥ 16.1%.
• Diluted EPS: ~ $2.78; Adjusted EPS ~ $4.06.
• Operating cash flow: ~ $627 million; free cash flow ~ $505 million.

For earnings history and earnings-related data on Gartner, Inc. (IT) click here.

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