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Verisk (VRSK) to Report Q2 Earnings: What's in the Offing?

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Verisk Analytics, Inc. (VRSK - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, after market close.

Let's check out how things have shaped up for the announcement.

Q2 Expectations

The Zacks Consensus Estimate for Verisk’s second-quarter 2021 revenues stands at $733.06 million, indicating growth of 7.9% from the year-ago reported figure.

The consensus estimate for Insurance segment revenues is pegged at $540 million, indicating growth of 11.1% from the prior-year reported figure. Within the segment, underwriting and rating revenues are likely to have benefited from an annual increase in prices derived from continued enhancements of the solutions’ contents within the industry-standard insurance programs, sale of expanded solutions to existing customers in commercial and personal lines, and contributions from catastrophe-modeling services and international software solutions. Claims revenues are likely to have been aided by repair-cost-estimating solutions revenues.

The consensus mark for Energy and Specialized Markets segment revenues is pegged at $160 million, indicating 3.9% growth from the year-ago reported figure. The segment is expected to have benefited from contributions from the growth in core research, and environmental health and safety service revenues.

The consensus estimate for Financial Services segment revenues is pegged at $34.06 million, indicating year-over-year decline of 10.4%. The segment is expected to have been weighed down by certain contract transitions, projects that did not reoccur, and as a result of the COVID-19 pandemic, lower levels of consulting spending by bank customers.

Verisk’s bottom line is likely to have benefited from cost discipline in the business, coronavirus-led reduction in travel expenses and lower average share count. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.34 per share, indicating growth of 3.9% from the year-ago quarter’s reported figure.

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Verisk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Verisk has an Earnings ESP of -1.68% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2021 earnings.

Avis Budget (CAR - Free Report) has an Earnings ESP of +30.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clean Harbors (CLH - Free Report) has an Earnings ESP of +18.71% and a Zacks Rank #2.

Envestnet has an Earnings ESP of +1.54% and a Zacks Rank #2.


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