Why Chilton adds a new position in Gartner Inc.



Chilton and Gartner Inc.

Chilton Investment added new positions in Fortune Brands Home & Security Inc. (FBHS), J.B. Hunt Transport Services Inc. (JBHT), Now Inc. (DNOW), Gartner Inc. (IT), and Kansas City Southern (KSU). The company sold positions in Canadian Pacific Railway Ltd. (CP), Spansion Inc. (CODE), LKQ Corporation (LKQ), Avago Technologies Ltd. (AVGO), and KKR & Co. L.P. (KKR).

Chilton Investment’s new position in Gartner Inc. accounts for 0.32% of the fund’s 2Q U.S. long portfolio.
Overview of Gartner

Gartner’s headquarters are in Stamford, Connecticut. The company provides research and analysis on the global information technology industry. The company operates in three business segments:

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  • Gartner’s research segment delivers independent, objective IT research and insight primarily through a subscription-based digital media service. It provides insight on critical and timely technology and supply chain initiatives to CIOs, other IT professionals, supply chain leaders, technology companies and the investment community through reports, briefings, proprietary tools, access to analysts, peer networking services, and membership programs.
  • The consulting segment provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance.
  • The events segment provides IT, supply chain, and business professionals the opportunity to attend various symposia, conferences and exhibitions to learn, contribute, and network with their peers.

Gartner tops earnings and revenue estimates for 2Q14

Gartner’s total revenues increased 17% in 2Q14 as compared to the corresponding period a year ago. Diluted earnings per share was $0.58 in 2Q14 compared to $0.49 in the second quarter of 2013. Robust demand for the company’s services drove revenue, which topped street expectations.

Acquisitions drive growth

Gartner management said that “recent acquisitions and our accelerated pace of share repurchase activity demonstrate our confidence and optimism in our tremendous market opportunity and growth potential over the long term.”

Gartner made three acquisitions in the second quarter, including Software Advice Inc., Market Visio Oy, and SircleIT Inc. These acquisitions will help Gartner have a direct presence with its growing client base in Russia and Finland and increase its operations worldwide.

Segment performance

Research, Gartner’s largest and most profitable segment, saw revenue increase 14% primarily as a result of robust client retention rates. Consulting revenue grew 12% year-over-year due to higher contract optimization and core consulting revenues. Plus, contract value increased across all of the company’s sales regions, client sizes, and industry sectors.

Events revenue increased 13% as the overall number of attendees and exhibitors increased. Improved performance of its ongoing events also led to increased profits.

The next article in the series will discuss Chilton’s new position in Kansas City Southern.


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