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Verisk (VRSK) Earnings & Revenues Surpass Estimates in Q1
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Verisk Analytics Inc. (VRSK - Free Report) has reported impressive first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant currency (OCC) basis.
VRSK shares have gained 13.2% over the past year, outperforming the 12.6% rally of the industry it belongs to.
Underwriting and Rating revenues saw a year-over-year uptick of 8.2% on a reported basis and 7.8% at OCC to $498 million, beating our estimate of $496.4 million. Claim revenues increased 7.6% on a reported basis and 4.7% at OCC to $206 million and surpassed our estimate of $201.9 million.
Adjusted EBITDA grew 11.8% from the year-ago quarter on a reported basis and 10.6% at OCC to $380 million, missing our estimated $384.7 million. The adjusted EBITDA margin was 54%, increasing 180 basis points from the year-ago figure but missing our estimated 55.1%.
Verisk Analytics exited the quarter with cash and cash equivalents of $352.4 million compared with $302.7 million held at the end of fourth-quarter 2023. The long-term debt was $2.9 billion, flat with the year-ago quarter.
Net cash generated from operating activities was $372.2 million. The free cash flow generated during the quarter was $317 million. The company repurchased shares of $200 million in the quarter and returned $55.8 million as dividends to shareholders.
2024 Guidance
For 2024, Verisk Analytics expects revenues of $2.84-$2.90 billion. The Zacks Consensus Estimate for revenues is pegged at $2.88 billion, higher than the mid-point ($2.87) of the company's guided range.
Adjusted EBITDA is expected to be $1.54-$1.60 billion. The adjusted EBITDA margin is expected to be 54-55%. Adjusted EPS expectation is between $6.3 and $6.6. The Zacks Consensus Estimate for earnings is pegged at $6.48, higher than the mid-point ($6.45) of the company’s guided range.
FCN’s quarterly earnings per share of $2.23 surpassed the Zacks Consensus Estimate by 26.7% and increased 66.4% on a year-over-year basis. Total revenues of $928.6 million beat the consensus mark by 4.9% and increased 15.1% from the year-ago quarter.
Rollins, Inc.’s (ROL - Free Report) first-quarter 2024 earnings met the Zacks Consensus Estimate, while revenues beat the same.
ROL’s adjusted earnings of 20 cents per share increased 11.1% year over year. Revenues of $748.3 million beat the consensus mark by 2.9% and improved 13.7% year over year. Organic revenues of $702.4 million increased 7.5% year over year.
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Verisk (VRSK) Earnings & Revenues Surpass Estimates in Q1
Verisk Analytics Inc. (VRSK - Free Report) has reported impressive first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant currency (OCC) basis.
VRSK shares have gained 13.2% over the past year, outperforming the 12.6% rally of the industry it belongs to.
Verisk Analytics, Inc. Price and EPS Surprise
Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote
Quarterly Details
Underwriting and Rating revenues saw a year-over-year uptick of 8.2% on a reported basis and 7.8% at OCC to $498 million, beating our estimate of $496.4 million. Claim revenues increased 7.6% on a reported basis and 4.7% at OCC to $206 million and surpassed our estimate of $201.9 million.
Adjusted EBITDA grew 11.8% from the year-ago quarter on a reported basis and 10.6% at OCC to $380 million, missing our estimated $384.7 million. The adjusted EBITDA margin was 54%, increasing 180 basis points from the year-ago figure but missing our estimated 55.1%.
Verisk Analytics exited the quarter with cash and cash equivalents of $352.4 million compared with $302.7 million held at the end of fourth-quarter 2023. The long-term debt was $2.9 billion, flat with the year-ago quarter.
Net cash generated from operating activities was $372.2 million. The free cash flow generated during the quarter was $317 million. The company repurchased shares of $200 million in the quarter and returned $55.8 million as dividends to shareholders.
2024 Guidance
For 2024, Verisk Analytics expects revenues of $2.84-$2.90 billion. The Zacks Consensus Estimate for revenues is pegged at $2.88 billion, higher than the mid-point ($2.87) of the company's guided range.
Adjusted EBITDA is expected to be $1.54-$1.60 billion. The adjusted EBITDA margin is expected to be 54-55%. Adjusted EPS expectation is between $6.3 and $6.6. The Zacks Consensus Estimate for earnings is pegged at $6.48, higher than the mid-point ($6.45) of the company’s guided range.
Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
FTI Consulting, Inc. (FCN - Free Report) reported impressive first-quarter 2024 results.
FCN’s quarterly earnings per share of $2.23 surpassed the Zacks Consensus Estimate by 26.7% and increased 66.4% on a year-over-year basis. Total revenues of $928.6 million beat the consensus mark by 4.9% and increased 15.1% from the year-ago quarter.
Rollins, Inc.’s (ROL - Free Report) first-quarter 2024 earnings met the Zacks Consensus Estimate, while revenues beat the same.
ROL’s adjusted earnings of 20 cents per share increased 11.1% year over year. Revenues of $748.3 million beat the consensus mark by 2.9% and improved 13.7% year over year. Organic revenues of $702.4 million increased 7.5% year over year.