UPDATE 1-Forrester profit tops targets, outlook bullish

* Q1 adj EPS $0.27 beats estimates by 10 cents

* Q1 rev beats/misses estimates

* Q2 profit, sales forecasts beat estimates

* Reiterates full-year forecast

April 30 (Reuters) - Forrester Research Inc (FORR.O) reported a first-quarter profit that beat market estimates, helped by a 9 percent rise in its key research services business, and it also unveiled a strong outlook for the next quarter, sending its shares up 19 percent.

With companies pulling back on spending on technology due to the weakness in the economy, technology market research firms have been sharply pulling back on investments and cutting costs in order to weather the challenging climate.

The company said based on its deferred revenue model, the current softness in the market will result in a delayed impact on its revenue later in the year, but reiterated its full-year forecast.

Forrester said its board also authorized a buyback of up to an additional $50 million of its common stock.

First-quarter net income for Forrester rose to $2.6 million, or 11 cents a share, from $5.0 million, or 21 cents a share, a year earlier. Excluding items, earnings were 27 cents a share.

Revenue rose 2.5 percent to $56.4 million. Analysts expected earnings of 17 cents a share, excluding exceptional items, on revenue of $54.6 million, according to Reuters Estimates.

For the second quarter, the company forecast earnings of 33 cents to 37 cents a share, excluding items, on revenue of $60 million to $63 million.

Analysts were looking for earnings of 27 cents a share, excluding items, on revenue of $57.4 million.

Shares of Forrester, which competes with Gartner Inc (IT.N) and privately held IDC, were up $4.20 at $25.81 in morning trade Thursday on Nasdaq. (Reporting by S. John Tilak in Bangalore; Editing by Anil D'Silva)