The technology sector growth is slow and that is not news. It is more congruous to the overall global economy instead of working as a separate unit. One thing that is in the boom is market search and Gartner, the largest technology market research firm is on the fast track. After releasing the quarterly report in August the company has helped boost the share prices. It hit the all-time high on Wednesday.
Despite all the aggravating technology services market, Gartner and other research firms are in demand because when the growth slows companies tend to search for the reasons and solutions. And Gartner has set a strong brand presence in the market.
“It is a bit of a paradox that overall IT market growth is slowing, but the desire for Gartner’s market research continues to increase,” said Duncan Chapple, consultancy director at market research firm Loudhouse, a tech research firm that generally doesn’t compete directly with Gartner.
The August-released report on the second fiscal quarter operations beat all the results expected by other analysts. The firm had been running a hot streak of profitability for some time now and this quarter was no exception.
In the report, Gartner announced a 45-cent profit per share that was 32 percent higher than the same period a year earlier. The operations revenues were also in the upward motion, recording a 9 percent rise to $397.5 Million. However, this is the first time that the company has not registered an operations rise in double digits.
The stock rose 9 percent after the report and is still up 5 percent from the pre-report period.
As of the technology industry, Gartner has predicted a 3 percent meagre growth in corporate spending, accumulating $3.6 Trillion.
The three main lines of operations at the Stamford-based company are research, consultancy and events management. The latest reported the highest revenue growth of 13 percent though it is the smallest unit in the company. Research recorded 11 percent but consultancy showed a regression of 2 percent.