Gartner Swings to Profit

The IT-research provider's earnings and outlook top estimates.
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Gartner

(IT) - Get Report

shares jumped 10% Tuesday after the company reported a higher-than-expected profit on increased revenue and lower operating costs.

The Stamford, Conn.-based IT-research provider earned $7.8 million, or 7 cents a share, in the quarter, reversing a year-earlier loss of $14.7 million, or 13 cents a share. Analysts polled by Thomson First Call were expecting earnings of 3 cents a share.

First-quarter revenue rose 16% to $231 million. Revenue from research rose 10% to $137 million and revenue from consulting increased 19% to $76 million. Events revenue totaled $15 million for the first quarter, an 80% jump.

"Our first quarter results demonstrate that our growth strategy is working. We are firmly on track to increase top line growth while driving improved operating margins," the company said.

For the full year, Gartner forecast earnings of 44 cents to 48 cents a share on revenue of $1.04 billion to $1.06 billion. Analysts target earnings of 43 cents a share on revenue of $1.05 billion.

Gartner shares recently were up $1.50 to $16.02.

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