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Verisk Analytics, Inc.(VRSK - Free Report) reported solid third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of $1.44 outpaced the consensus mark by 5.1% and grew 9.1% on a year-over-year basis. The upside was backed by organic growth within the business, lower interest expense, and lower average share count.
Revenues of $759 million beat the consensus estimate by 0.6% and increased 8% year over year on a reported basis and 5.1% on an organic constant-currency (cc) basis.
Over the past six months, shares of Verisk have improved 11% compared with 9.1% growth of the industry it belongs to and 11.2% increase of the Zacks S&P 500 composite.
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Segmental Performance
Insurance segment revenues totaled $557.9 million, up 10.6% year over year on a reported basis and 7.4% on an organic cc basis.
Within the segment, underwriting and rating revenues of $390.5 million rose 10.4% on a reported basis and 7% on an organic cc basis. The upside was primarily driven by an annual increase in prices derived from continued enhancements of the solutions’ contents within the industry-standard insurance programs, sale of expanded solutions to existing customers in commercial and personal lines, and contributions from catastrophe-modeling services and international software solutions.
Claims revenues amounted to $167.4 million, improving 11.1% on a reported basis and 8.2% on an organic cc basis. The top line was positively impacted by repair cost estimating solutions revenues and claims analytics revenues.
Energy and Specialized Markets segment revenues of $165.9 million increased 5% year over year on a reported basis and 2.5% on an organic cc basis. The uptick can be attributed to contributions from consulting, and environmental health and safety service revenues.
Financial Services segment revenues of $35.2 million declined 12.7% year over year on a reported basis and 13.5% on an organic cc basis. The segment was weighed down by certain contract transitions, projects that did not reoccur and lower bankruptcy volumes. These declines more than offset the solid growth in spend informed analytics revenues.
Operating Results
Adjusted EBITDA of $378.8 million increased 3.5% on a reported basis and 2.1% on an organic cc basis. Adjusted EBITDA margin fell to 49.9% from 52.1% in the prior-year quarter.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk generated $285.2 million of cash from operating activities and capex was $61.4 million. Free cash flow was $223.8 million.
Share Repurchases & Dividend Payout
Verisk paid out a cash dividend of 29 cents per share on Sep 30. On Oct 27, the company's board of directors approved a quarterly cash dividend of 29 cents, payable on Dec 31, 2021, to holders of record as of Dec 15, 2021.
During the reported quarter, the company repurchased almost 798,000 shares at an average price of $187.91 per share, for a total cost of $150 million. As of Sep 30, 2021, the company had $678.8 million available under its share repurchase authorization.
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Verisk's (VRSK) Q3 Earnings & Revenues Surpass Estimates
Verisk Analytics, Inc.(VRSK - Free Report) reported solid third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of $1.44 outpaced the consensus mark by 5.1% and grew 9.1% on a year-over-year basis. The upside was backed by organic growth within the business, lower interest expense, and lower average share count.
Revenues of $759 million beat the consensus estimate by 0.6% and increased 8% year over year on a reported basis and 5.1% on an organic constant-currency (cc) basis.
Over the past six months, shares of Verisk have improved 11% compared with 9.1% growth of the industry it belongs to and 11.2% increase of the Zacks S&P 500 composite.
Segmental Performance
Insurance segment revenues totaled $557.9 million, up 10.6% year over year on a reported basis and 7.4% on an organic cc basis.
Within the segment, underwriting and rating revenues of $390.5 million rose 10.4% on a reported basis and 7% on an organic cc basis. The upside was primarily driven by an annual increase in prices derived from continued enhancements of the solutions’ contents within the industry-standard insurance programs, sale of expanded solutions to existing customers in commercial and personal lines, and contributions from catastrophe-modeling services and international software solutions.
Claims revenues amounted to $167.4 million, improving 11.1% on a reported basis and 8.2% on an organic cc basis. The top line was positively impacted by repair cost estimating solutions revenues and claims analytics revenues.
Energy and Specialized Markets segment revenues of $165.9 million increased 5% year over year on a reported basis and 2.5% on an organic cc basis. The uptick can be attributed to contributions from consulting, and environmental health and safety service revenues.
Financial Services segment revenues of $35.2 million declined 12.7% year over year on a reported basis and 13.5% on an organic cc basis. The segment was weighed down by certain contract transitions, projects that did not reoccur and lower bankruptcy volumes. These declines more than offset the solid growth in spend informed analytics revenues.
Operating Results
Adjusted EBITDA of $378.8 million increased 3.5% on a reported basis and 2.1% on an organic cc basis. Adjusted EBITDA margin fell to 49.9% from 52.1% in the prior-year quarter.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
Cash Flow
Verisk generated $285.2 million of cash from operating activities and capex was $61.4 million. Free cash flow was $223.8 million.
Share Repurchases & Dividend Payout
Verisk paid out a cash dividend of 29 cents per share on Sep 30. On Oct 27, the company's board of directors approved a quarterly cash dividend of 29 cents, payable on Dec 31, 2021, to holders of record as of Dec 15, 2021.
During the reported quarter, the company repurchased almost 798,000 shares at an average price of $187.91 per share, for a total cost of $150 million. As of Sep 30, 2021, the company had $678.8 million available under its share repurchase authorization.
Currently, Verisk carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.