Gartner Increases Sales but Misses Estimates on Earnings

Gartner (NYSE: IT  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gartner met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.

Margins grew across the board.

Revenue details
Gartner logged revenue of $427.7 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $427.6 million. Sales were 12% higher than the prior-year quarter's $382.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.46. The nine earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. GAAP EPS of $0.46 for Q4 were 28% higher than the prior-year quarter's $0.36 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.8%, 90 basis points better than the prior-year quarter. Operating margin was 16.2%, 210 basis points better than the prior-year quarter. Net margin was 10.5%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $366.7 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $1.75.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 76 members out of 100 rating the stock outperform, and 24 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Gartner a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gartner is outperform, with an average price target of $42.38.

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