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Why Is Verisk (VRSK) Up 9.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Verisk Analytics (VRSK - Free Report) . Shares have added about 9.7% 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? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Verisk Analytics, Inc. before we dive into how investors and analysts have reacted as of late.
Verisk Q4 Earnings Surpass Estimates
Verisk reported impressive fourth-quarter fiscal 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate.
VRSK’s adjusted earnings were $1.82 per share, surpassing the Zacks Consensus Estimate by 13.8% and increasing 13% from the year-ago quarter. Total revenues came in at $778.8 million, beating the consensus estimate marginally and increasing 5.9% on a year-over-year basis.
Quarterly Details of Verisk
Underwriting and Rating revenues witnessed a year-over-year increase of 8.7% on a reported basis and 7.2% at organic constant currency (OCC) to $556 million, surpassing the consensus estimate of $541.1 million. Claim revenues declined marginally on a reported basis but increased marginally at OCC to $223 million, missing the consensus estimate of $230.2 million.
Adjusted EBITDA rose 9.8% from the year-ago quarter on a reported basis and 6.2% on an OCC basis to $437 million. The adjusted EBITDA margin was 56.1%, increasing from the year-ago quarter’s 54.1%.
Verisk exited the reported quarter with cash and cash equivalents of $2.2 billion compared with $2.1 billion at the end of the third quarter of fiscal 2025. The long-term debt was $3.2 billion, flat compared with the preceding quarter.
Net cash utilized for operating activities was $343.3 million. The free cash flow used during the quarter was $276.1 million. The company repurchased shares worth $223.8 million in the quarter and returned $62.5 million as dividends to shareholders.
VRSK’s 2026 Guidance
For fiscal 2026, Verisk estimates revenues to be in the range of $3.19 billion-$3.24 billion. The adjusted EBITDA forecast is between $1.79 billion and $1.83 billion, while the adjusted EBITDA margin is anticipated to be 56%-56.5%. The tax rate is expected to be 23% to 26%. Dividend per share is expected to be $2.00.
The company continues to expect adjusted earnings per share (EPS) in the range of $7.45-$7.75.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Verisk has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
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 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.
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Why Is Verisk (VRSK) Up 9.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Verisk Analytics (VRSK - Free Report) . Shares have added about 9.7% 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? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Verisk Analytics, Inc. before we dive into how investors and analysts have reacted as of late.
Verisk Q4 Earnings Surpass Estimates
Verisk reported impressive fourth-quarter fiscal 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate.
VRSK’s adjusted earnings were $1.82 per share, surpassing the Zacks Consensus Estimate by 13.8% and increasing 13% from the year-ago quarter. Total revenues came in at $778.8 million, beating the consensus estimate marginally and increasing 5.9% on a year-over-year basis.
Quarterly Details of Verisk
Underwriting and Rating revenues witnessed a year-over-year increase of 8.7% on a reported basis and 7.2% at organic constant currency (OCC) to $556 million, surpassing the consensus estimate of $541.1 million. Claim revenues declined marginally on a reported basis but increased marginally at OCC to $223 million, missing the consensus estimate of $230.2 million.
Adjusted EBITDA rose 9.8% from the year-ago quarter on a reported basis and 6.2% on an OCC basis to $437 million. The adjusted EBITDA margin was 56.1%, increasing from the year-ago quarter’s 54.1%.
Verisk exited the reported quarter with cash and cash equivalents of $2.2 billion compared with $2.1 billion at the end of the third quarter of fiscal 2025. The long-term debt was $3.2 billion, flat compared with the preceding quarter.
Net cash utilized for operating activities was $343.3 million. The free cash flow used during the quarter was $276.1 million. The company repurchased shares worth $223.8 million in the quarter and returned $62.5 million as dividends to shareholders.
VRSK’s 2026 Guidance
For fiscal 2026, Verisk estimates revenues to be in the range of $3.19 billion-$3.24 billion. The adjusted EBITDA forecast is between $1.79 billion and $1.83 billion, while the adjusted EBITDA margin is anticipated to be 56%-56.5%. The tax rate is expected to be 23% to 26%. Dividend per share is expected to be $2.00.
The company continues to expect adjusted earnings per share (EPS) in the range of $7.45-$7.75.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Verisk has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
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 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.