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Verisk Analytics, Inc.(VRSK - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings per share of $1.47 outpaced the consensus mark by 5.8% and grew 15.8% on a year-over-year basis. The upside was backed by organic growth within the business, and lower interest expenses, effective tax rate and average share count.
Revenues of $766 million missed the consensus estimate by 0.3% but increased 7.4% year over year on a reported basis and 5.2% on an organic constant-currency (cc) basis.
Over the past year, shares of Verisk have improved 11.2% against 4.2% decline of the industry it belongs to. The Zacks S&P 500 composite rose 10.8% in the same time frame.
Image Source: Zacks Investment Research
Segmental Performance
Insurance segment revenues totaled $563.4 million, up 9% year over year on a reported basis and 6.4% on an organic cc basis.
Within the segment, underwriting and rating revenues of $399.1 million rose 10.8% on a reported basis and 7.2% 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 $164.3 million, improving 4.8% on a reported basis and 4.4% 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 $164.5 million increased 3.9% year over year on a reported basis and 2.8% on an organic cc basis. The uptick can be attributed to contributions from core research solutions, and environmental health and safety service revenues.
Financial Services segment revenues of $38.1 million grew 0.1% year over year on a reported basis as well as on an organic cc basis. The segment was backed by growth in the company’s spend informed analytics revenues. This was partially offset by projects that did not reoccur and lower bankruptcy volumes.
Operating Results
Adjusted EBITDA of $375 million increased 9% on a reported basis and 7.6% on an organic cc basis. Adjusted EBITDA margin rose to 49% from 48.2% in the prior-year quarter.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk exited fourth-quarter 2021 with cash and cash equivalents of $280.3 million compared with $218.8 million at the end of the prior-year quarter. Long-term debt was $2.34 billion compared with $2.69 billion at the end of prior-year quarter.
Verisk generated $188.6 million of cash from operating activities and capex was $61.4 million. Free cash flow was $103.3 million.
Share Repurchases & Dividend Payout
Verisk paid out a cash dividend of 29 cents per share on Dec 31. On Feb 16, 2022, the company's board of directors approved a dividend hike of 6.9%, thereby raising the quarterly cash dividend from 29 cents per share to 31 cents per share. The raised dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022.
During the reported quarter, the company repurchased almost 352,000 shares at an average price of $212.82 per share, for a total cost of $75.0 million. As of Dec 31, 2021, the company had $603.8 million available under its share repurchase authorization. On Feb 16, 2022, the company's board of directors has approved an additional authorization of $1.0 billion.
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
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Verisk's (VRSK) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Verisk Analytics, Inc.(VRSK - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings per share of $1.47 outpaced the consensus mark by 5.8% and grew 15.8% on a year-over-year basis. The upside was backed by organic growth within the business, and lower interest expenses, effective tax rate and average share count.
Revenues of $766 million missed the consensus estimate by 0.3% but increased 7.4% year over year on a reported basis and 5.2% on an organic constant-currency (cc) basis.
Over the past year, shares of Verisk have improved 11.2% against 4.2% decline of the industry it belongs to. The Zacks S&P 500 composite rose 10.8% in the same time frame.
Image Source: Zacks Investment Research
Segmental Performance
Insurance segment revenues totaled $563.4 million, up 9% year over year on a reported basis and 6.4% on an organic cc basis.
Within the segment, underwriting and rating revenues of $399.1 million rose 10.8% on a reported basis and 7.2% 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 $164.3 million, improving 4.8% on a reported basis and 4.4% 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 $164.5 million increased 3.9% year over year on a reported basis and 2.8% on an organic cc basis. The uptick can be attributed to contributions from core research solutions, and environmental health and safety service revenues.
Financial Services segment revenues of $38.1 million grew 0.1% year over year on a reported basis as well as on an organic cc basis. The segment was backed by growth in the company’s spend informed analytics revenues. This was partially offset by projects that did not reoccur and lower bankruptcy volumes.
Operating Results
Adjusted EBITDA of $375 million increased 9% on a reported basis and 7.6% on an organic cc basis. Adjusted EBITDA margin rose to 49% from 48.2% 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
Balance Sheet and Cash Flow
Verisk exited fourth-quarter 2021 with cash and cash equivalents of $280.3 million compared with $218.8 million at the end of the prior-year quarter. Long-term debt was $2.34 billion compared with $2.69 billion at the end of prior-year quarter.
Verisk generated $188.6 million of cash from operating activities and capex was $61.4 million. Free cash flow was $103.3 million.
Share Repurchases & Dividend Payout
Verisk paid out a cash dividend of 29 cents per share on Dec 31. On Feb 16, 2022, the company's board of directors approved a dividend hike of 6.9%, thereby raising the quarterly cash dividend from 29 cents per share to 31 cents per share. The raised dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022.
During the reported quarter, the company repurchased almost 352,000 shares at an average price of $212.82 per share, for a total cost of $75.0 million. As of Dec 31, 2021, the company had $603.8 million available under its share repurchase authorization. On Feb 16, 2022, the company's board of directors has approved an additional authorization of $1.0 billion.
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
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
Automatic Data Processing(ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.