Hot stock to watch: Global leading IT research and consulting firm Gartner Inc. (IT) Friday issued the second-quarter earnings report, which beat the consensus expectations, thanks to revenue growth of its research department. Promoted by the good financial results, IT stock price rose more than 5% today.
Net profit increased to $41.50 million, or 43 cents, from $32.2 million, or 32 cents per share a year earlier.
Excluding one-time items, the company’s adjusted quarterly profit was 45 cents per share, higher than the average estimate of 41 cents of the analysts surveyed by Thomson Reuters. Revenue rose 9% to $398 million, lower than the average analyst estimate of $401 million.
The revenue of the research department of the company rose 11% to $278 million. Events sector’s revenue rose 13%, to $42.5 million; consulting business revenue declined 2% to $76.7 million.
Gartner reiterated its full year EPS earnings expectation of $1.63-$1.79, on revenue of $1.6 billion to $1.65 billion. Analysts on average have been expecting the company’s annual earnings per share of $1.72, on revenue of $1.62 billion.
IT stock price rose sharply by 5.16%, or $2.30, to 46.84, on a volume of 1.15 million shares versus the daily average of 511,903 shares. The current IT stock price is above its 50-day and 200-day moving averages, which are standing at $43.5 and $40.39, respectively. Gartner has a market cap of $4.37 billion.