Stock Option Advisory

Gartner (IT) Researches Its Way to Strong First Quarter

Gartner Incorporated (IT), a Connecticut based information technology research company, said its first quarter profit more than doubled. The company communicated that its impressive earnings growth was due largely to greater contract revenue. This is likely to motivate stock trading as the growth is attributed directly to the company’s business operations.

The company said its net income reached $21.5 million, or 21 cents per share, for its quarter, which ended on March 31. During last year’s first quarter, the company netted $8.2 million, or 8 cents per share. This means that the company increased its profit more the double, which definitely emboldens investors maintain Gartner in the trading portfolio as part of a long-term stock trading strategy.

Sign up now for PowerOptions free 14-day trial

Company sales were up 10 percent during the quarter at $290.1 million. Last year’s quarterly revenue was $264.2 million. Analysts greatly underestimated the company’s growth. Estimates called for a much smaller profit of 9 cents per share, on sales of $285.1 million. This much better than expected earnings drove stock investing as Gartner was up over 3 percent in early trade following the news.

Sign up now for PowerOptionsApplied 30-day risk free trial

The company said information technology research revenue, a primary driver of business, grew 19 percent. Consulting revenue was up a modest two percent. In its full year outlook, the company said it expects earnings of 88 to 98 cents per share. This is more in line with analysts who have called for gains of 94 cents per share for 2008.

If a company’s share price spikes strongly, it is possible covered call investing may be a good strategy as covered call strategies can be put into play to provide potential income and also provide downside protection. Another reason these stock trading strategies may become more enticing is that the one year price target for the stock is $24. It currently trades just above that mark. This does not guarantee the stock cannot move up more over that time, but it may make investors more cautious about diving in.

Gartner has long been recognized as leader in industry research reports that it provides to companies and organizations. Technology companies regularly rely on outsourced research to help keep in touch with industry trends, product development, competition, and other items relative to their companies.

Investors seem to be holding steady immediately following the announcement, as the less than $1 trading range on the day offers limited implied volatility. Over the last 52 weeks, the company has traded between $15 and $28. The fact that the company currently trades near its 52-week high may keep some conservative stock research gurus from including Gartner in their long term stock picks.

As the US economy picks up steam, companies are going to be looking more and more for a competitive advantage. The IT sector is especially competitive so companies in that industry are likely to demand more premium information from companies like Gartner.

For more stock market help about how to identify and research in investing in stock options, stock market portfolios and stock market investment strategies, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can invest with the confidence that you have the most recent, up-to-date information in covered call strategies and stock investing. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare stocks. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.

PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of stock investing.

[tags] US, IT, Gartner Inc., covered call investing, covered call strategies, implied volatility, investing in stock options, long term stock picks, poweroptions, stock investing, stock market help, stock market investment strategies, stock options, stock research, stock trading [/tags]

Leave a Reply

Your email address will not be published. Required fields are marked *