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(Reuters) -Gartner 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 4%.
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.
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