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Adjusted earnings (excluding 92 cents from non-recurring items) were $1.29 per share, beating the Zacks Consensus Estimate by 9.3% and our estimates by 10.3%. This was due to strong segmental revenue growth and core operating leverage. Adjusted earnings decreased 3.7% on a year-over-year basis.
Total revenues of $651.6 million surpassed the consensus estimate by 3.1% and our estimate by 3.4% but decreased 16% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business ("3E") and the Financial Services segment.
Verisk outperformed its industry in the past year. The company has lost 2.3% in the past year, compared with the industry’s 10.5% decline.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
The Insurance segment’s revenues grew 11.1% on a reported basis and 9.8% on an OCC basis in the first quarter.
Underwriting and rating revenues saw an uptick of 10.7% to $460.5 million. Claim revenues increased to $191.1 million, indicating an increase of 12.1% on a year-over-year basis.
With the Energy and Specialized Markets segment qualified as discontinued operations, no revenues were reported from the segment. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 4.1% on a year-over-year basis to $340.3 million. The adjusted EBITDA margin was at 52.2%, increasing 210 basis points from the year-ago figure.
Net cash generated from operating activities was $365.3 million. The free cash flow generated during the quarter was $304.1 million.
2023 Guidance
The company expects revenues to be in the range of $2.59-$2.63 billion. The midpoint of the guided range matches the Zacks Consensus Estimate of $2.61 billion.
Adjusted EBITDA is expected to be in the band of $1.37-$1.42 billion. Adjusted EBITDA margin is expected to be in the band of 53-54%. Adjusted earnings per share is estimated to be between $5.2 and $5.5. The midpoint of the guided range ($5.35) falls below the Zacks Consensus Estimate of $5.44.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the consensus estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimate by 4.65%.
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Verisk's (VRSK) Q1 Earnings Beat Estimates, Decrease Y/Y
Verisk Analytics Inc. (VRSK - Free Report) reported better-than-expected first-quarter 2023 results.
Adjusted earnings (excluding 92 cents from non-recurring items) were $1.29 per share, beating the Zacks Consensus Estimate by 9.3% and our estimates by 10.3%. This was due to strong segmental revenue growth and core operating leverage. Adjusted earnings decreased 3.7% on a year-over-year basis.
Total revenues of $651.6 million surpassed the consensus estimate by 3.1% and our estimate by 3.4% but decreased 16% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business ("3E") and the Financial Services segment.
Verisk outperformed its industry in the past year. The company has lost 2.3% in the past year, compared with the industry’s 10.5% decline.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
Segment Details
The Insurance segment’s revenues grew 11.1% on a reported basis and 9.8% on an OCC basis in the first quarter.
Underwriting and rating revenues saw an uptick of 10.7% to $460.5 million. Claim revenues increased to $191.1 million, indicating an increase of 12.1% on a year-over-year basis.
With the Energy and Specialized Markets segment qualified as discontinued operations, no revenues were reported from the segment. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 4.1% on a year-over-year basis to $340.3 million. The adjusted EBITDA margin was at 52.2%, increasing 210 basis points from the year-ago figure.
Net cash generated from operating activities was $365.3 million. The free cash flow generated during the quarter was $304.1 million.
2023 Guidance
The company expects revenues to be in the range of $2.59-$2.63 billion. The midpoint of the guided range matches the Zacks Consensus Estimate of $2.61 billion.
Adjusted EBITDA is expected to be in the band of $1.37-$1.42 billion. Adjusted EBITDA margin is expected to be in the band of 53-54%. Adjusted earnings per share is estimated to be between $5.2 and $5.5. The midpoint of the guided range ($5.35) falls below the Zacks Consensus Estimate of $5.44.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the consensus estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimate by 4.65%.