Gartner Q3 profit beats estimates on contract value growth; raises FY guidance
IT•Gartner reported Q3 revenue of $1.50 billion and adjusted EPS of $3.59, beating analyst estimates of $1.49 billion and $2.84, respectively. It raised full-year guidance for revenue, adjusted EBITDA, adjusted EPS and free cash flow, and repurchased 0.9 million shares for $138 million.
1. Quarterly results
Gartner reported Q3 net income of $214 million, operating cash flow of $294 million and adjusted EPS of $3.59, up 30% year over year. Revenue was $1.50 billion, slightly above the $1.49 billion analyst estimate.
2. Growth and outlook
The company said contract value growth continued to accelerate, with Global Business Sales contract value up 3.7% year over year on an FX-neutral basis. Conference segment revenue rose 15% on the same basis. Gartner raised its full-year guidance for revenue, adjusted EBITDA, adjusted EPS and free cash flow.
3. Share repurchases
Gartner repurchased 0.9 million shares for $138 million during the quarter.
