Research and advisory firm Gartner (NYSE:IT) will be reporting results tomorrow before the bell. Here’s what to look for. Gartner beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.72 billion, up 8.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ constant currency revenue estimates. Is Gartner a buy or sell going into earnings? Read our full analysis here, it’s free. This quarter, analysts are expecting Gartner’s revenue to grow 4.3% year on year to $1.54 billion, in line with the 4.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.72 per share.Gartner Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gartner has missed Wall Street’s revenue estimates twice over the last two years. Looking at Gartner’s peers in the it services & consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Grid Dynamics delivered year-on-year revenue growth of 25.8%, beating analysts’ expectations by 2%, and IBM reported flat revenue, topping estimates by 1%. Grid Dynamics traded down 3.1% following the results while IBM was also down 6.5%. Read our full analysis of Grid Dynamics’s results here and IBM’s results here. There has been positive sentiment among investors in the it services & consulting segment, with share prices up 11.7% on average over the last month. Gartner is up 11.7% during the same time and is heading into earnings with an average analyst price target of $483.02 (compared to the current share price of $427.48). Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. View Comments
Gartner (IT) To Report Earnings Tomorrow: Here Is What To Expect
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