Gartner forecasts weak 2024 results on slowing demand at consulting unit (updated)

Gartner

06/02/2024 13:44

(Adds share movement in paragraph 2)
       Feb 6 (Reuters) - Gartner  IT.N  forecast annual results
below analysts' estimates on Tuesday as the research and
advisory firm deals with slowing demand at its consulting unit,
with clients scaling back spending amid an uncertain economy.
    The company's shares fell about 7.8% in premarket trading.
    Gartner, which helps its customers make business decisions
through data and analytics, expects full-year revenue of at
least $6.24 billion, compared to estimates of $6.35 billion,
according to LSEG data.
    The company also forecast 2024 adjusted earnings of at least
$10.55 per share, compared to expectations of $11.96.
    It had earlier flagged that IT companies would remain
hesitant to sign new contracts and take up initiatives in 2024.
    Gartner's consulting segment recorded its first fall in
revenue in 2023, down 7% at $128.5 million in the fourth
quarter.
    On an adjusted basis, the company earned $3.04 per share,
beating estimates of $2.83.
    Gartner's mainstay research business, which offers 
subscription-based research products and accounts for more than
half of its revenue, saw a 6% jump in revenue to $1.24 billion.
    The Stamford, Connecticut-based company recorded revenue of
$1.59 billion in the fourth quarter, in line with estimates.

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Shounak Dasgupta)
 ((HarshitaMary.Varghese@thomsonreuters.com))