It has been about a month since the last earnings report for Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Verisk due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Verisk Q1 Earnings Surpass Estimates

Verisk Analytics Inc. 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.

Quarter 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. 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Verisk has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Verisk has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Verisk is part of the Zacks Business - Information Services industry. Over the past month, S&P Global (SPGI Quick QuoteSPGI - Free Report) , a stock from the same industry, has gained 1.1%. The company reported its results for the quarter ended March 2024 more than a month ago.

S&P Global reported revenues of $3.49 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $4.01 for the same period compares with $3.15 a year ago.

For the current quarter, S&P Global is expected to post earnings of $3.40 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for S&P Global. Also, the stock has a VGM Score of D.