It has been about a month since the last earnings report for Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) . Shares have added about 7.2% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Verisk Q3 Earnings Surpass Estimates

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

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.

Quarter 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. 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, Verisk has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. 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 8.9%. The company reported its results for the quarter ended September 2024 more than a month ago.

S&P Global reported revenues of $3.58 billion in the last reported quarter, representing a year-over-year change of +15.9%. EPS of $3.89 for the same period compares with $3.21 a year ago.

For the current quarter, S&P Global is expected to post earnings of $3.27 per share, indicating a change of +4.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

S&P Global has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.