Gartner Inc is a technology research and advisory firm. It provides insights, information, and tools to company executives in the HR, IT, finance, customer service, and other domains. IT leaders and company CIOs are generally the target audience for Gartner’s research. Gartner is considered to be among the best information technology stocks 2020. The company is scheduled to report its third-quarter 2020 results on November 3rd, 2020. The company had reported its second-quarter 2020 results back in early August.
Gartner Q22020 Earnings Beat Analyst Estimates
Gartner’s Q22020 earnings beat analyst consensus estimates by a small margin. Revenues were down 9.1% on a year-on-year basis to $973.1 million. However, the number was higher than analyst estimates by more than 3%. Adjust earnings per share came in at $1.2, a fall of 17.2% on a year-on-year basis but still higher than analyst estimates by a margin of close to 50%.
The research segment revenues were up 6% on a Y-o-Y basis. However, the revenues in the consulting segment were down by 5.9%. Operating cash flow for the quarter came in at $343 million while free cash flow was $322 million. The Total CapEx incurred for the period was $21 million.
The Pandemic Effect On The Best Information Technology Stocks 2020
The outbreak of the coronavirus is leading to significant shifts in the way people conduct business and interact with each other. These trends are proving to be tailwinds for many information technology stocks. During the Q22020 earnings call, Gartner Inc CEO Eugene Hall said, “Demand for our analyst interactions is up almost 30% year-over-year. Clients and nonclients alike continue to leverage our coronavirus resource center as we plan for the reset. With the challenging macroeconomic conditions, we’re seeing an uptick in leaders accessing our cost optimization content.”
As businesses around the world face increased disruption, Gartner is well-placed to provide relevant insights that can empower CIOs and IT leaders to spearhead the right changes.