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What's in Store for Verisk (VRSK) this Earnings Season?
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Business information services firm Verisk Analytics, Inc. (VRSK - Free Report) is scheduled to report fourth-quarter 2016 results after market close on Feb 21. In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 9 cents. Over the trailing four quarters, Verisk managed to beat earnings estimates twice, delivering an average positive surprise of 3.03%.
Let’s see how things are shaping up for this announcement.
Key Factors in the Fourth Quarter
Verisk continues to deliver outstanding data analytics solutions to customers across its core verticals of insurance, natural resources, and financial services. During the quarter, Verisk acquired The GeoInformation Group, a premier provider of geographic data solutions, for an undisclosed amount. In addition, Verisk Insurance Solutions launched its new energy insurance unit. This unit will focus on providing analytical services to the oil and gas, petrochemicals, power generation, and metals and mining industries to help improve operational efficiencies, minimize costs, and expand profitably. This will, in turn, help the company improve its top line in the to-be-reported quarter.
During the quarter, the company also announced the acquisition of MarketStance, whose proprietary analytics model will help provide actionable insights in the insurance industry. The acquisition is likely to be accretive for the company in the near future. The acquisition of The PCI Group ("PCI"), a leading consortium of five specialist companies that offer integrated data and subscriptions research in the chemicals, fibers, films, and plastics sectors, will further augment the revenues of the company.
Verisk aims to create long-term value through organic and better return on invested capital. The company continuously seeks to expand its portfolio by leveraging on its deep knowledge and embedded position to develop new, proprietary data sets and predictive analytics, by working in unison with its customers to understand their evolving needs. Verisk has recorded average organic revenue growth of about 8% over the past 10 years. At the same time, the company continues to extend its footprint in new markets, with healthy long-term growth potential, through targeted international expansion. This holistic growth model is expected to strengthen its leading position in the market.
Earnings Whispers
Despite the inherent strengths, our proven model does not conclusively show that Verisk is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently at 0.00%.
Zacks Rank: Verisk carries a Zacks Rank #2, which when combined with 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
FirstEnergy Corp. (FE - Free Report) with an Earnings ESP of +2.56% and a Zacks Rank #3.
Concho Resources Inc. with an Earnings ESP of +66.67% and a Zacks Rank #3.
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What's in Store for Verisk (VRSK) this Earnings Season?
Business information services firm Verisk Analytics, Inc. (VRSK - Free Report) is scheduled to report fourth-quarter 2016 results after market close on Feb 21. In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 9 cents. Over the trailing four quarters, Verisk managed to beat earnings estimates twice, delivering an average positive surprise of 3.03%.
Let’s see how things are shaping up for this announcement.
Key Factors in the Fourth Quarter
Verisk continues to deliver outstanding data analytics solutions to customers across its core verticals of insurance, natural resources, and financial services. During the quarter, Verisk acquired The GeoInformation Group, a premier provider of geographic data solutions, for an undisclosed amount. In addition, Verisk Insurance Solutions launched its new energy insurance unit. This unit will focus on providing analytical services to the oil and gas, petrochemicals, power generation, and metals and mining industries to help improve operational efficiencies, minimize costs, and expand profitably. This will, in turn, help the company improve its top line in the to-be-reported quarter.
During the quarter, the company also announced the acquisition of MarketStance, whose proprietary analytics model will help provide actionable insights in the insurance industry. The acquisition is likely to be accretive for the company in the near future. The acquisition of The PCI Group ("PCI"), a leading consortium of five specialist companies that offer integrated data and subscriptions research in the chemicals, fibers, films, and plastics sectors, will further augment the revenues of the company.
Verisk aims to create long-term value through organic and better return on invested capital. The company continuously seeks to expand its portfolio by leveraging on its deep knowledge and embedded position to develop new, proprietary data sets and predictive analytics, by working in unison with its customers to understand their evolving needs. Verisk has recorded average organic revenue growth of about 8% over the past 10 years. At the same time, the company continues to extend its footprint in new markets, with healthy long-term growth potential, through targeted international expansion. This holistic growth model is expected to strengthen its leading position in the market.
Earnings Whispers
Despite the inherent strengths, our proven model does not conclusively show that Verisk is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently at 0.00%.
Verisk Analytics, Inc. Price and EPS Surprise
Verisk Analytics, Inc. Price and EPS Surprise | Verisk Analytics, Inc. Quote
Zacks Rank: Verisk carries a Zacks Rank #2, which when combined with 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Enable Midstream Partners, LP with an Earnings ESP of +11.77% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
FirstEnergy Corp. (FE - Free Report) with an Earnings ESP of +2.56% and a Zacks Rank #3.
Concho Resources Inc. with an Earnings ESP of +66.67% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>