STAMFORD, Conn. - Gartner , Inc. (NYSE: NYSE:IT), a leading research and advisory company, reported its first-quarter results today, surpassing analyst expectations for adjusted earnings per share (EPS) but providing a softer outlook for the full year 2024.
The company's adjusted EPS for the first quarter was $2.93, which was $0.40 higher than the analyst estimate of $2.53. Despite this beat, the stock saw a modest decline of 1.2% following the announcement, indicating investor concerns over the company's future performance.
The company's revenue for the quarter was in line with consensus estimates at $1.47 billion, marking a 4.5% increase from the same quarter last year. This growth is attributed to Gartner's continued focus on profitability and free cash flow, which saw a significant increase of 14.7% and 15.8% respectively. Gartner also repurchased 0.5 million common shares for $225 million during the quarter.
Gartner's CEO, Gene Hall, expressed confidence in the company's performance, stating, "Financial results for the quarter were ahead of our expectations with strong profitability and free cash flow."
He also noted the company's increased guidance for 2024 on an FX neutral basis and emphasized Gartner's commitment to shareholder value through its repurchase program.
However, the company's full-year 2024 guidance fell short of analyst expectations. Gartner forecasts an adjusted EPS of $10.55, below the consensus of $11.38.
Similarly, the revenue guidance for FY2024 is projected to be $6.24 billion, compared to the analyst consensus of $6.29 billion. This soft outlook is the primary driver behind the stock's downward movement post-earnings release.
Investors are weighing the company's solid first-quarter performance against its cautious guidance for the year ahead. Gartner's management remains optimistic about the company's ability to accelerate contract value growth as the year progresses, but the market's reaction suggests concerns over whether this growth will materialize as expected.
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