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Verisk (VRSK) to Post Q4 Earnings: What's in the Cards?

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Verisk Analytics, Inc. (VRSK - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 19, after the bell.

While we expect the company’s top line to reflect segmental strength, the bottom line is likely to be driven by solid organic growth, 2017 tax reform policy (Tax Cuts and Jobs Act) and contributions from acquisition.

Shares of Verisk have gained 28.3% over the past year, significantly outperforming the 8.2% rally of the industry it belongs to and 1.9% rise of the Zacks S&P 500 Composite Index.

How Things Are Shaping Up for the Announcement?

The top line is expected to benefit from solid growth across all the three segments — Insurance, Energy and Specialized Markets and Financial Services.

Insurance segment revenues are expected to be driven by strength across its two units — Underwriting & rating and Claims. While strength in the company’s catastrophe modeling services and underwriting solutions should boost Underwriting & rating revenues, Claims top line is likely to benefit from repair cost estimating solutions and claims analytics revenues.

Improvement in the energy business’s end market, and strength in environmental health and safety services as well as consulting and research businesses are likely to drive Energy and Specialized Markets segment. The Financial Services segment is expected to grow on the back of enterprise data management and portfolio management solutions revenues.

Verisk Analytics, Inc. Revenue (TTM)

 

Strong organic growth, 2017 tax reform policy (Tax Cuts and Jobs Act) and contributions from acquisitions are likely to boost the company’s bottom line.

What Our Model Says?

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Verisk has a Zacks Rank #4 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Copart (CPRT - Free Report) , with an Earnings ESP of +1.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Conduent Inc. (CNDT - Free Report) , with an Earnings ESP of +0.95% and a Zacks Rank #3.

Cardlytics, Inc. (CDLX - Free Report) , with an Earnings ESP of +46.27% and a Zacks Rank #3.

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