Gartner Earns Top Marks in Q1 IT Services Earnings

Earnings
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Summary · why it matters

Gartner reported first-quarter revenues of $1.51 billion, down 1.5% year on year, in line with analysts' expectations and marking a very strong quarter with a beat on EPS estimates. The company, which provides research, advisory services, and conferences, saw Contract Value accelerate and raised its full-year guidance for Adjusted EBITDA excluding divested operations, Adjusted EPS, and free cash flow. Among the eight IT services and consulting stocks tracked, the group's revenues met consensus estimates but next-quarter revenue guidance came in 2.3% below expectations, and share prices have fallen an average of 22% since reporting. IBM outperformed with revenues of $15.92 billion, up 9.5% year on year and beating estimates by 1.3%, while Everforth posted the weakest results with flat revenues of $968.3 million and a disappointing guidance update that sent its stock down 56.3%. DXC Technology reported revenues of $3.13 billion, down 1.2% year on year, and EPAM Systems reported revenues of $1.4 billion, up 7.6% year on year, both in line with expectations but with mixed guidance.

Impact on stocks 5

Information Technology± Mixed · 2 stocks
Gartner Inc
IT
▲ PositiveCapitalrelevance

Gartner reported Q1 revenues in line with expectations, beat on EPS, raised full-year guidance for Adjusted EBITDA, EPS, and free cash flow.

Everforth, Inc.
EFOR
▼ NegativeDemandrelevance

Everforth posted flat revenues and disappointing guidance, sending its stock down 56.3%, indicating weak demand.

Quantum Computing · 1 stocks
Cloud & Digital Infrastructure · 1 stocks
DXC Technology Co
DXC
▼ NegativeDemandrelevance

DXC Technology reported revenues down 1.2% year on year, in line with expectations but with mixed guidance, reflecting weak demand.

Artificial Intelligence · 1 stocks
EPAM Systems Inc
EPAM
▲ PositiveDemandrelevance

EPAM Systems reported revenues up 7.6% year on year, in line with expectations but with mixed guidance, indicating solid demand.