IT Q3 2024 Earnings
Reported Nov 5, 2024 at 6:02 AM ET · SEC Source
Q3 24 EPS
$2.50
BEAT +5.04%
Est. $2.38
Q3 24 Revenue
$1.48B
BEAT +0.62%
Est. $1.48B
vs S&P Since Q3 24
-96.5%
TRAILING MARKET
IT -71.6% vs S&P +25.0%
Market Reaction
Did IT Beat Earnings? Q3 2024 Results
Gartner delivered a solid beat across both headline metrics in Q3 2024, with adjusted EPS of $2.50 clearing the $2.38 consensus by 5.04% and revenue of $1.48 billion edging past estimates by 0.62% while growing 5.4% year-over-year. The quarter's most… Read more Gartner delivered a solid beat across both headline metrics in Q3 2024, with adjusted EPS of $2.50 clearing the $2.38 consensus by 5.04% and revenue of $1.48 billion edging past estimates by 0.62% while growing 5.4% year-over-year. The quarter's most striking feature, however, was a $300 million gain tied to insurance claims for events cancelled in 2020 and 2021, which propelled GAAP net income 130.6% higher and inflated reported diluted EPS to $5.32; strip that out and the picture was more measured, with adjusted EBITDA growing just 2.1% to $340 million amid a 7.7% rise in SG&A expenses. The subscription-driven Research segment anchored results at $1.28 billion in revenue, while contract value, a key forward indicator, reached $5.00 billion growing 7.3% on an FX-neutral basis. Operating cash flow surged 78.5% to $591 million, partly reflecting the insurance proceeds. CEO Gene Hall reiterated confidence in a path toward long-term, sustained, double-digit growth, with updated full-year 2024 guidance available in the company's earnings supplement.
Key Takeaways
- • Contract value grew 7.3% YoY FX neutral to $5.0 billion
- • Global Business Sales contract value growth of 11.6% FX neutral outpaced Global Technology Sales at 6.1% FX neutral
- • $300 million gain on event cancellation insurance claims for events cancelled in 2020 and 2021 boosted GAAP net income
- • Conferences revenue surged 32.5% with contribution margin expanding to 40.2%
- • Operating cash flow increased 78.5% and free cash flow grew 86.8%
IT YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
IT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Revenue, Adjusted EBITDA, and Adjusted EPS were ahead of expectations. Contract value in the third quarter grew high single digits. We remain on a path to long-term, sustained, double-digit growth because of the compelling client value proposition we offer and the large addressable market we serve.”
— Gene Hall, Q3 2024 Earnings Press Release
IT Earnings Trends
IT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IT EPS Trend
Earnings per share: estimate vs actual
IT Revenue Trend
Quarterly revenue: estimate vs actual
IT Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 25 BEAT | $2.43 | $2.76 | +13.73% | $1.52B | +0.23% |
| Q2 25 BEAT | $3.31 | $3.53 | +6.80% | $1.69B | +0.74% |
| Q1 25 MISS | $2.72 | $2.71 | -0.23% | $1.53B | -0.05% |
| Q3 24 BEAT | $2.38 | $2.50 | +5.04% | $1.48B | +0.62% |