Gartner Q1 Resutls Top View; Lifts FY16 Profit View Above Estimates

(RTTNews) - Analyst and research firm Gartner Inc. (IT) reported Thursday that its first-quarter net income was $40.17 million, an increase of 42 percent from last year's $28.35 million. Earnings per share were $0.48, compared to $0.32 in 2015.

Earnings per share excluding acquisition adjustments was $0.61, compared to $0.37 last year.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

For first quarter 2016, total revenue was $557.27 million, an increase of 18 percent from prior year's $471.19 million. Excluding the negative impact of foreign exchange, quarterly revenues increased 21 percent. Analysts were looking for revenues of $540.47 million.

Gene Hall, Gartner's chief executive officer, said, "Gartner had a great start to 2016. … We have raised guidance following our first quarter performance and remain confident in our ability to deliver tremendous value to our clients and long-term growth in cash and earnings to our shareholders."

For fiscal 2016, the company now expects earnings per share between $2.27 and $2.49, a growth of 10 percent to 21 percent from last year. Adjusted earnings per share is projected in the range of $2.67 to $2.89, a growth of 12 percent to 21 percent.

Total revenue is projected between $2.405 billion and $2.465 billion, a growth of 11 percent to 14 percent.

Previously, the company was projecting earnings per share of $2.15 to $2.37, adjusted earnings per share of $2.55 to $2.77, and revenues of $2.390 billion to $2.450 billion.

Analysts expect earnings of $2.64 per share on revenues of $2.42 billion for the year.