Gartner, Inc. IT) is scheduled to report second-quarter 2020 results on Aug 4, before market open.
Let’s check out how things have shaped up for the announcement.
Q2 Expectations
The Zacks Consensus Estimate for Gartner’s second-quarter 2020 revenues is pegged at $940.31 million, indicating a decline of 12.2% from the year-ago quarter’s reported figure.
Going by segments, the consensus estimate for Research revenues is pegged at $826 million, flat compared with the year-ago reported figure. Within this segment, renewals and new business with companies in industries like travel, entertainment and retail are expected to have been the most impacted by the COVID-19 crisis. Supply chain and marketing businesses are also estimated to have performed weak. Though client engagement is projected to stay healthy, phasing out of certain low-profitable marketing products might have reduced the retention and growth rate of marketing practice.
The consensus estimate for Consulting revenues is pegged at $88 million, indicating year-over-year decline of 15.4%. Postponement of major new initiatives by many clients as a result of coronavirus-led economic uncertainties might have weighed on the segment.
The consensus mark for Conferences revenues is pegged at $0.14 million, indicating 99.9% decrease from the year-ago quarter’s reported figure. Lesser number of conferences and reduced events schedule (as of coronavirus-led lockdowns) are expected to have weighed on the segment’s top line. As a preventive measure, the company has been reducing staff to manage expenses and shifting to virtual-conference mode as an alternative measure.
The consensus estimate for earnings stands at 79 cents, implying a significant year-over-year decline of 45.5%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Gartner this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Gartner has an Earnings ESP of +5.43% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2020 earnings.
Broadridge Financial BR has an Earnings ESP of +2.70% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aptiv APTV has an Earnings ESP of +9.08% and a Zacks Rank #3.
Waste Connections WCN has an Earnings ESP of +5.56% and a Zacks Rank #3.
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