Gartner (IT) to Report Q2 Earnings: Here’s What to Expect

Gartner, Inc. IT is scheduled to release its second-quarter 2023 results on Aug 1 before market open.

IT has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the four trailing quarters, with an average surprise of 2.2%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $1.49 billion, up 8.1% from the year-ago actual figure. The company’s diversification of business on the basis of cycle length is likely to have helped its revenues.

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

The consensus estimate for earnings per share is pegged at $2.48, down 13% year over year. Increased costs are likely to have likely weighed on the company’s bottom line.

Segmental Expectations

Revenues from the Research segment are likely to have increased 7.9% on a year-over-year basis, the Zacks Consensus Estimate of which is currently pegged at $1.23 billion. An expected increase in contract value growth is anticipated to have benefited the segment.

The consensus estimate for the Consulting segment’s revenues in the to-be-reported quarter is pegged at $126 million, indicating a 4.1% increase from the year-ago quarter. Such an uptick is likely to have been due to the prevailing demand situation in the segment.

Revenues from the Conferences segment are likely to have increased 20.2% from the year-ago reported figure, the Zacks Consensus Estimate of which is currently pegged at $137 million. The increase is likely to have been due to the expected rise in in-person destination conferences.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

IT has an Earnings ESP of +5.86% and a Zacks Rank #4(Sell).

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.

Aptiv APTV currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the bottom line is pegged at $1.03 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.72 billion, up 16.5% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.

APTV has an Earnings ESP of +4.37. The company is scheduled to release its second-quarter earnings on Aug 3.

SoFi Technologies SOFI currently has a Zacks Rank of 3. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 7 cents per share. In the previous-year quarter, the company reported a loss of 12 cents per share. The consensus mark for revenues is pegged at $474.6 million, up 30.9% from the prior-year reported figure. SOFI had an average surprise of 23% in the previous four quarters.

SOFI has an Earnings ESP of +2.37. The company is slated to declare its second-quarter results on Jul 31.

Trane Technologies TT currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $2.55 per share, up 18.1% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.62 billion, up 10.4% from the prior-year reported figure. TT had an average surprise of 6.7% in the previous four quarters.

TT has an Earnings ESP of +1.20. The company is scheduled to declare its second-quarter results on Aug 2.

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