Gartner to Report Q2 Earnings: What's in the Offing?

Gartner Inc. IT is scheduled to release its second-quarter 2024 results on Jul 30, before market open.

IT has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the four trailing quarters, with an average surprise of 19.5%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is pegged at $1.6 billion, indicating a 5.4% rise from the year-ago quarter's actual. The company's revenues are likely to have gained from the improvement in its segmental performance.

Subscription revenues and contract value are anticipated to have driven the research segment's revenues. The Conferences segment of the company delivers valuable insights to a highly engaged audience and is likely to have gained from the launch of conferences. Consulting assists clients in executing their strategic initiatives via deeper, extended project-based work. This segment's revenues are expected to have been driven by the demand for labor-based services in the digital transformation sphere and cost optimization. It is likely to have been aided by contract optimization.

The consensus estimate for earnings per share is pegged at $3, suggesting year-over-year growth of 6.7%. The bottom line is expected to have benefited from strong margins.

What Our Model Says

Our proven model does not predict an earnings beat for IT this time around. 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 is not the case here.

IT has an Earnings ESP of -2.86% and a Zacks Rank of 2.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Block SQ: The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $6.2 billion, indicating year-over-year growth of 12.3%. For earnings, the consensus mark is pegged at 76 cents per share, suggesting a 94.9% rise from the year-ago quarter's actual. The company beat the consensus estimate in three of the past four quarters and missed in one, with an average surprise of 12.8%.

SQ currently has an Earnings ESP of +9.93% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter results on Aug 1.

Trane Technologies TT: The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $5.1 billion, indicating year-over-year growth of 8.7%. For earnings, the consensus mark is pegged at $3.1 per share, suggesting a 14.9% rise from the year-ago quarter's reported figure. The company beat the consensus estimate in the past four quarters. It has an average surprise of 7.5%.

TT currently carries an Earnings ESP of +0.95% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter results on Jul 31.

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