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.
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 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.
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.
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.
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.