Gartner, Inc. (IT), an IT, research and advisory company, Tuesday reported a 24% drop in fourth quarter profit, hurt by charges and weakness in the consulting and event segments. Nevertheless, earnings came in line with expectations, while revenues surpassed estimates. Gartner also said it expects full year 2010 results to be better than current estimates.
Net income of Gartner decreased 24% to $25.72 million during the quarter from $33.65 million in the same quarter a year ago. On a per share basis, earnings were down 26% at $0.26, compared to $0.35 a year ago.
On average, 6 analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimate typically exclude one-time items.
Quarterly results were negatively impacted by acquisition and integration charges totaling $2.9 million pre-tax, or $0.02 per share after-tax.
Total revenue fell 5% to $328.83 million from $347.32 million in the year-ago quarter, but still beat Street estimates of $317.67 million.
Research revenue increased 2% to $195.18 million, while consulting and events revenue, both dropped 14% to $81.51 million and $52.14 million, respectively.
Total costs and expenses were $287.08 million, down 2% from $291.54 million in the year-earlier quarter. Operating income dropped 25% to $41.74 million from $55.78 million in the prior-year quarter.
For full year 2009, net income declined 20% to $82.96 million or $0.85 per share from $103.87 million or $1.05 per share a year ago. Revenues were down 11% at $1.14 billion, compared to $1.28 billion in the prior year. The Street expected earnings of $0.85 per share on revenues of $1.13 billion for the year.
Looking ahead, the company said it expects full year 2010 earnings in the range of $0.74 to $0.87 per share and non-GAAP income, excluding acquisition and integration charges, in the range of $0.91 to $1.03 per share. Analysts' currently expect earnings in the range of $0.94 per share for the year.
Revenues are expected to be in a range of $1.25 billion to $1.29 billion, while the Street currently sees revenues in the range of $1.23 billion for the year.
IT is currently trading at $20.75, down $0.11 or 0.50%, on a volume of 89,099 shares.
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