Shares of Gartner (NYSE:IT) fell 13.4% in July, according to data from S&P Global Market Intelligence. The research data company's stock sank after its second-quarter results arrived with disappointing guidance.
Gartner published second-quarter results on July 30, posting revenue of $1.07 billion (up 7% year over year) and non-GAAP adjusted earnings per share of $1.45 (up 41% year over year). Total contract value rose to $3.2 billion, up 11% year over year on a currency-adjusted basis. The average analyst estimate had called for earnings of $1.18 per share on revenue of $1.15 billion, but the strong earnings beat wasn't enough to lift the stock, because the company issued a downward revision for its full-year sales and earnings targets.
Gartner's previous full-year revenue target had called for sales to come in between $4.22 billion and $4.32 billion, but it now expects sales for the year to wind up between $4.22 billion and $4.26 billion. The company now expects to post adjusted earnings per share between $3.39 and $3.64, down from its previous target for earnings per share between $3.82 and $4.19.
Gartner stock has moved lower in August, trading down roughly 5% in the month so far amid sell-offs for the broader market.
Hitting the midpoint of its sales and earnings targets would see the company posting 6% year-over-year revenue growth and roughly 7% EPS decline.
Gartner stock is priced at roughly 37 times this year's expected earnings.