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Adjusted earnings (excluding 17 cents from non-recurring items) were $1.51 per share, beating the Zacks Consensus Estimate by 7.9% but decreasing 1.3% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance, and extreme events solutions.
Total revenues of $675 million surpassed the consensus estimate by 3.3% but decreased 9.6% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
Quarter Details
The Insurance segment’s revenues grew 10.6% on a reported basis and 9.8% on OCC basis in the first quarter. Within the segment, Underwriting and Rating revenues saw an uptick of 9.2% to $478.1 million, beating our estimate by 3.4%. Claim revenues increased 14.4% year over year to $196.9 million, surpassing our estimate by 4.8%.
With the Energy and Specialized Markets segment closed, there were no revenues from the segment. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 13.5% on a year-over-year basis to $365.2 million, beating our estimate of $356.1 million. The adjusted EBITDA margin was at 54.1%, increasing 160 basis points from the year-ago figure but falling short of our estimated 54.8%.
Net cash generated from operating activities was $192.9 million. Free cash flow generated during the quarter was $134.7 million.
Guidance
The company expects revenues to be in the range of $2.63-$2.66 billion, raised from the prior expectation of $2.59-$2.63 billion. The Zacks Consensus Estimate is pegged at $2.63 billion. Adjusted EBITDA is expected to be in the band of $1.39-$1.43 billion as compared to the prior range of $1.37-$1.42 billion. Expected adjusted EBITDA margin is unchanged and remains in the band of 53-54%. Adjusted earning per share margin expectation is raised to the band of $5.5-$5.7, from the previous range of $5.2-$5.5. The midpoint of the guided range ($5.6) is above the consensus estimate of $5.51.
Earnings Snapshot
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings (excluding 37 cents from non-recurring items) per share of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
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Verisk (VRSK) Surpasses Q2 Earnings and Revenues Estimates
Verisk Analytics Inc. (VRSK - Free Report) reported better-than-expected second-quarter 2023 results.
Adjusted earnings (excluding 17 cents from non-recurring items) were $1.51 per share, beating the Zacks Consensus Estimate by 7.9% but decreasing 1.3% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance, and extreme events solutions.
Total revenues of $675 million surpassed the consensus estimate by 3.3% but decreased 9.6% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
Quarter Details
The Insurance segment’s revenues grew 10.6% on a reported basis and 9.8% on OCC basis in the first quarter. Within the segment, Underwriting and Rating revenues saw an uptick of 9.2% to $478.1 million, beating our estimate by 3.4%. Claim revenues increased 14.4% year over year to $196.9 million, surpassing our estimate by 4.8%.
Verisk Analytics, Inc. Price and EPS Surprise
Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote
With the Energy and Specialized Markets segment closed, there were no revenues from the segment. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 13.5% on a year-over-year basis to $365.2 million, beating our estimate of $356.1 million. The adjusted EBITDA margin was at 54.1%, increasing 160 basis points from the year-ago figure but falling short of our estimated 54.8%.
Net cash generated from operating activities was $192.9 million. Free cash flow generated during the quarter was $134.7 million.
Guidance
The company expects revenues to be in the range of $2.63-$2.66 billion, raised from the prior expectation of $2.59-$2.63 billion. The Zacks Consensus Estimate is pegged at $2.63 billion. Adjusted EBITDA is expected to be in the band of $1.39-$1.43 billion as compared to the prior range of $1.37-$1.42 billion. Expected adjusted EBITDA margin is unchanged and remains in the band of 53-54%. Adjusted earning per share margin expectation is raised to the band of $5.5-$5.7, from the previous range of $5.2-$5.5. The midpoint of the guided range ($5.6) is above the consensus estimate of $5.51.
Earnings Snapshot
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings (excluding 37 cents from non-recurring items) per share of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.