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Verisk Analytics Earnings & Revenues Surpass Estimates in Q3

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Verisk Analytics Inc. (VRSK - Free Report) has reported impressive third-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

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VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.

VRSK shares have gained 10.9% year to date, underperforming the 11.4% rally of the industry it belongs to and 23.7% growth of the Zacks S&P 500 Composite.

YTD Price Performance

 

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Quarterly Details of Verisk Analytics

Underwriting and Rating revenues saw a year-over-year increase of 6.7% on a reported basis and 6.5% at organic constant currency (OCC) to $507 million, missing our estimate of $512.2 million. Claim revenues grew 7.9% on a reported basis and 7.4% at OCC to $218 million, and beat our projection of $210.9 million.

Adjusted EBITDA gained 9.4% from the year-ago quarter on a reported basis and 7.2% at OCC to $394 million, surpassing our estimate of $337.9 million. The adjusted EBITDA margin was 54.3%, increasing from the year-ago quarter’s 51.2%.

Verisk Analytics exited the reported quarter with cash and cash equivalents of $458 million compared with $632.1 million at the end of the second quarter of 2024. The long-term debt was $2.5 billion compared with $2.6 billion in the preceding quarter.

Net cash utilized from operating activities was $296.2 million. The free cash flow used during the quarter was $241 million. The company repurchased shares worth $340 million in the quarter and returned $55.3 million as dividends to shareholders.

VRSK’s FY24 Guidance

For fiscal 2024, Verisk Analytics expects revenues of $2.84-$2.90 billion. The mid-point of the guided range ($2.87 billion) is in line with the Zacks Consensus Estimate. Adjusted EBITDA is expected to be $1.54-$1.60 billion. The adjusted EBITDA margin is anticipated to be 54-55%. Adjusted EPS growth is expected between $6.3 and $6.6. The mid-point ($6.45) of the company’s guided range is lower than the consensus estimate for EPS of $6.57.

Verisk carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots of VRSK’s Peers

Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2024 results.

Earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion outpaced the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.

FactSet Research Systems, Inc. (FDS - Free Report) posted impressive fourth-quarter fiscal 2024 results.

FDS’s earnings per share (excluding $1.4 from non-recurring items) of $3.7 beat the consensus mark by 3.9% and increased 27.7% from the year-ago quarter. Revenues of $562.2 million surpassed the Zacks Consensus Estimate by 2.7% and gained 4.9% from the year-ago quarter.


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