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Verisk (VRSK) Surpasses Q3 Earnings and Revenue Estimates
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Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues beat estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
Total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Insurance segment revenues grew 11.1% on a reported basis and 9.4% on an OCC basis in the reported quarter. Within the segment, Underwriting and Rating revenues saw an uptick of 9.6% to $475.2 million, beating our estimate by 0.6%. Claim revenues increased to $202.4 million and surpassed our estimate by 9.5%, indicating an increase of 14.3% on a year-over-year basis.
With the closing of the Energy and Specialized Markets segment, there were no revenues from the same. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 12.5% on a year-over-year basis to $366 million, beating our estimate by 2.1%. The adjusted EBITDA margin was 54%, increasing 60 basis points from the year-ago figure but fell short of our estimated 54.5%.
The company exited the quarter with cash and cash equivalents of $416.8 million compared with $308.7 million held at the end of the previous quarter. Long-term debt was $2.85 billion compared with $2.84 billion held at the end of the previous quarter. Net cash generated from operating activities was $250.1 million. Free cash flow generated during the quarter was $195.8 million. The company repurchased shares of $49.8 million in the third quarter and returned $49.2 million as dividends to shareholders.
Unaltered Guidance
The company expects revenues to be in the range of $2.63-$2.66 billion. The Zacks Consensus Estimate is pegged at $2.66 billion. Adjusted EBITDA is expected to be in the band of $1.39-$1.43 billion. Expected adjusted EBITDA margin is unchanged in the band of 53-54%. Adjusted earning per share margin expectation is between $5.5 and $5.7. The consensus estimate of earnings of $5.71 per share lies above the guided range.
Earnings Snapshot
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year. Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. (WM - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
WM’s adjusted earnings per share of $1.63 surpassed the consensus estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported mixed first-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
ADP’s adjusted earnings per share of $2.08 beat the consensus estimate by 2.5% and grew 11.8% from the year-ago fiscal quarter’s figure. Total revenues of $4.51 billion missed the consensus estimate by 0.2% but improved 7% from the year-ago fiscal quarter’s reading on a reported basis and 7% on an organic constant-currency basis.
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Verisk (VRSK) Surpasses Q3 Earnings and Revenue Estimates
Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues beat estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
Total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
Quarter Details
Insurance segment revenues grew 11.1% on a reported basis and 9.4% on an OCC basis in the reported quarter. Within the segment, Underwriting and Rating revenues saw an uptick of 9.6% to $475.2 million, beating our estimate by 0.6%. Claim revenues increased to $202.4 million and surpassed our estimate by 9.5%, indicating an increase of 14.3% on a year-over-year basis.
With the closing of the Energy and Specialized Markets segment, there were no revenues from the same. Verisk Financial Services was sold in April 2022 and no revenues for the segment are accounted for.
Adjusted EBITDA grew 12.5% on a year-over-year basis to $366 million, beating our estimate by 2.1%. The adjusted EBITDA margin was 54%, increasing 60 basis points from the year-ago figure but fell short of our estimated 54.5%.
The company exited the quarter with cash and cash equivalents of $416.8 million compared with $308.7 million held at the end of the previous quarter. Long-term debt was $2.85 billion compared with $2.84 billion held at the end of the previous quarter. Net cash generated from operating activities was $250.1 million. Free cash flow generated during the quarter was $195.8 million. The company repurchased shares of $49.8 million in the third quarter and returned $49.2 million as dividends to shareholders.
Unaltered Guidance
The company expects revenues to be in the range of $2.63-$2.66 billion. The Zacks Consensus Estimate is pegged at $2.66 billion. Adjusted EBITDA is expected to be in the band of $1.39-$1.43 billion. Expected adjusted EBITDA margin is unchanged in the band of 53-54%. Adjusted earning per share margin expectation is between $5.5 and $5.7. The consensus estimate of earnings of $5.71 per share lies above the guided range.
Earnings Snapshot
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. (WM - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
WM’s adjusted earnings per share of $1.63 surpassed the consensus estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported mixed first-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
ADP’s adjusted earnings per share of $2.08 beat the consensus estimate by 2.5% and grew 11.8% from the year-ago fiscal quarter’s figure. Total revenues of $4.51 billion missed the consensus estimate by 0.2% but improved 7% from the year-ago fiscal quarter’s reading on a reported basis and 7% on an organic constant-currency basis.