Gartner's (NYSE: IT) third-quarter results gave evidence that its growth-through-acquisition strategy is creating value for clients and shareholders alike.
Gartner results: The raw numbers
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What happened with Gartner this quarter?
Total revenue surged 44% year over year to $828 million, boosted by the contributions of CEB, the best-practices insight and technology company Gartner acquired earlier this year. Excluding the impact of CEB, revenue rose 15%.
CEO Gene Hall highlighted the value proposition that the combined company can now offer to its clients during a conference call with analysts:
All told, adjusted EBITDA -- which excludes stock-based compensation, acquisition-related charges, and other nonrecurring items -- leapt 64% to $149 million. Adjusted net income also rose 23% to $59.5 million, while earnings per share increased 12% to $0.65.
Gartner updated its financial outlook for 2017, which now includes:
- Total revenue of $3,257 to $3,327, up from a previous estimate of $3.225 to $3.320
- Adjusted EBITDA of $685 to $710, compared to $685 million to $720 million
- Adjusted EPS of $3.39 to $3.50, versus $3.32 to $3.49
In a press release, Hall added:
With both its traditional Gartner and CEB businesses generating strong growth, Gartner Inc. appears well positioned to benefit from the growing global demand for trusted research and advisory services.
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