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Gartner's Earnings: A Preview

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Gartner (NYSE: IT) releases its next round of earnings this Tuesday, November 03. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Gartner's EPS to be near $0.53 on sales of $928.14 million. In the same quarter last year, Gartner announced EPS of $0.7 on revenue of $1.00 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 24.29%. Sales would be down 7.28% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.81 0.32 0.81 0.43
EPS Actual 1.20 1.20 1.18 0.70
Revenue Estimate 930.53 M 1.01 B 1.19 B 991.95 M
Revenue Actual 973.10 M 1.02 B 1.20 B 1.00 B

Stock Performance

Shares of Gartner were trading at $120.05 as of October 29. Over the last 52-week period, shares are down 23.86%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Gartner is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings