Research Desk Line-up: 21Vianet Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Gartner, Inc. (NYSE: IT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=IT, following the Company's reporting of its financial results on August 08, 2017, for the second quarter of the fiscal year 2017. The Company's adjusted revenue increased 9% on a y-o-y basis and was ahead of Wall Street's expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Information Technology Services industry. Pro-TD has currently selected 21Vianet Group, Inc. (NASDAQ: VNET) for due-diligence and potential coverage as the Company announced on August 22, 2017, its unaudited financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on 21Vianet when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on IT; also brushing on VNET. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the three months ended June 30, 2017, Gartner's revenue increased 38% to $843.73 million on a y-o-y basis from $610.00 million in Q2 FY16. During Q2 FY17, the Company's adjusted revenue increased 9% to $935.27 million on a y-o-y basis from $861.14 million in Q2 FY16. The adjusted revenue surpassed analysts' expectations of $920.0 million.
During Q2 FY17, Gartner's adjusted gross profit increased 7.9% to $590.58 million from $547.15 million in Q2 FY16. For the reported quarter, the Company's adjusted gross margin decreased 100 basis points to 63% of revenue from 64% of revenue in Q2 FY16.
During Q2 FY17, Gartner's operating loss was $98.39 million compared to an operating profit of $83.30 million in the same quarter of last year. During Q2 FY17, the Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 2% to $185.01 million from $182.22 million in Q2 FY16.
During Q2 FY17, Gartner's net loss was $92.28 million compared to a net income of $51.63 million in Q2 FY16. For the reported quarter, the Company's adjusted net income increased 26% to $79.44 million on a y-o-y basis from $63.03 million in Q2 FY16. For the reported quarter, the Company's diluted earnings per share (EPS) was negative $1.03 compared to positive $0.62 in Q2 FY16. During Q2 FY17, Gartner's adjusted diluted EPS increased 17.3% to $0.88 on a y-o-y basis from $0.75 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.83.
On April 05, 2017, Gartner completed the acquisition of CEB Inc. (NYSE: CEB), the industry leader in providing best practice and talent management insights.
Segment Details
Research - During Q2 FY17, Gartner's Research segment's adjusted revenue increased 11% to $674.57 million from $608.91 million in Q2 FY16. For the reported quarter, the segment's adjusted gross income increased 9% to $461.41 million from $424.10 million in Q2 FY16. During Q2 FY17, the segment's adjusted gross margin decreased 120 basis points to 68.4% of revenue from 69.6% of revenue in Q2 FY16. During Q2 FY17, traditional Gartner's client retention ratio was 83% which was at par with 83% in Q2 FY16. For the reported quarter, traditional Gartner's wallet retention ratio was 105% compared to 104% in Q2 FY16. During Q2 FY17, CEB's wallet retention ratio was 94% compared to 93% in Q2 FY16.
Consulting - During Q2 FY17, Gartner's Consulting segment's adjusted revenue increased 6% to $91.69 million from $86.55 million in Q2 FY16. For the reported quarter, the segment's adjusted gross income increased 11% to $31.43 million from $28.34 million in Q2 FY16. During Q2 FY17, the segment's adjusted gross margin increased 160 basis points to 34.3% of revenue from 32.7% of revenue in Q2 FY16. For the reported quarter, the segment's backlog decreased 2% to $91 million from $93 million in Q2 FY16.
Events - During Q2 FY17, Gartner's Events segment's adjusted revenue increased 10% to $95.15 million from $86.72 million in Q2 FY16. For the reported quarter, the segment's adjusted gross income increased 6% to $53.68 million from $50.83 million in Q2 FY16. During Q2 FY17, the segment's adjusted gross margin decreased 220 basis points to 56.4% of revenue from 58.6% of revenue in Q2 FY16.
Talent Assessment & Other - During Q2 FY17, Gartner's Talent Assessment & Other segment's adjusted revenue decreased 6% to $73.86 million from $78.97 million in Q2 FY16. For the reported quarter, the segment's adjusted gross income increased 41 basis points to $44.06 million from $43.88 million in Q2 FY16. During Q2 FY17, the segment's adjusted gross margin increased 410 basis points to 59.7% of revenue from 55.6% of revenue in Q2 FY16.
Balance Sheet
During H1 FY17, Gartner's cash provided by operating activities was $82.72 million compared to $161.78 million in the same period of last year. During H1 FY17, Gartner's free cash flow decreased 28.4% to $106.19 million from $148.32 million in H1 FY16.
For the reported quarter, Gartner's net debt to EBITDA ratio was 4.1x compared to 0.9x in Q2 FY16.
Outlook
For FY17, Gartner expects adjusted revenue to be in the range of $3.43 billion - $3.52 billion and adjusted EBITDA to be in the band of $685 million - $720 million.
The Company estimates adjusted diluted EPS to be in the range of $3.32 - $3.49 and free cash flow to be in the band of $335 million - $355 million for the fiscal year 2017.
Stock Performance
Gartner's share price finished yesterday's trading session at $118.84, rising slightly by 0.08%. A total volume of 344.51 thousand shares have exchanged hands. The Company's stock price soared 0.30% in the last three months, 15.14% in the past six months, and 30.62% in the previous twelve months. Additionally, the stock surged 17.58% since the start of the year. Shares of the Company have a PE ratio of 214.13 and currently have a market cap of $10.77 billion.
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