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Verisk (VRSK) Earnings Surpass Estimates in Q2, Revenues Miss
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Verisk Analytics Inc. (VRSK - Free Report) has reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
VRSK’s adjusted earnings (excluding 41 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 6.8% and rising 15.2.% from the year-ago quarter. Total revenues of $716.8 million missed the consensus estimate marginally while increasing 6.2% on a year-over-year basis.
VRSK shares have gained 19.7% over the year-to-date period, outperforming the 9.2% rally of the industry it belongs to and 14.2% growth of the Zacks S&P 500 Composite.
Underwriting and Rating revenues saw a year-over-year increase of 6.2% on a reported basis and 6% at organic constant currency (OCC) to $508 million, missing our estimate of $510.5 million. Claim revenues grew 6.3% on a reported basis and 5.8% at OCC to $209 million, and missed our expectation of $210.3 million.
Adjusted EBITDA gained 8.8% from the year-ago quarter on a reported basis and 8.5% at OCC to $397 million, meeting our estimate. The adjusted EBITDA margin was 69.7%, increasing from the year-ago quarter’s 54.1%.
Verisk Analytics exited the to-be-reported quarter with cash and cash equivalents of $632.1 million compared with $352.4 million held at the end of the first quarter of 2024. The long-term debt was $2.6 billion compared with $2.9 billion in the preceding quarter.
Net cash utilized from operating activities was $160.5 million. The free cash flow utilized during the quarter was 163 million. The company repurchased shares worth $150 million in the quarter and returned $55.5 million as dividends to shareholders.
FY24 Guidance
For fiscal 2024, Verisk Analytics expects revenues of $2.84-$2.90 billion. The mid-point ($2.87 billion) of the guided range is lower than the Zacks Consensus Estimate of $2.89 billion. Adjusted EBITDA is expected to be $1.54-$1.60 billion. The adjusted EBITDA margin is expected to be 54-55%. Adjusted EPS growth is anticipated 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 $6.55.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed second-quarter 2024 results.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate pegged at $2.3 billion.
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Verisk (VRSK) Earnings Surpass Estimates in Q2, Revenues Miss
Verisk Analytics Inc. (VRSK - Free Report) has reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
VRSK’s adjusted earnings (excluding 41 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 6.8% and rising 15.2.% from the year-ago quarter. Total revenues of $716.8 million missed the consensus estimate marginally while increasing 6.2% on a year-over-year basis.
VRSK shares have gained 19.7% over the year-to-date period, outperforming the 9.2% rally of the industry it belongs to and 14.2% growth of the Zacks S&P 500 Composite.
Verisk Analytics, Inc. Price and EPS Surprise
Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote
Quarterly Details
Underwriting and Rating revenues saw a year-over-year increase of 6.2% on a reported basis and 6% at organic constant currency (OCC) to $508 million, missing our estimate of $510.5 million. Claim revenues grew 6.3% on a reported basis and 5.8% at OCC to $209 million, and missed our expectation of $210.3 million.
Adjusted EBITDA gained 8.8% from the year-ago quarter on a reported basis and 8.5% at OCC to $397 million, meeting our estimate. The adjusted EBITDA margin was 69.7%, increasing from the year-ago quarter’s 54.1%.
Verisk Analytics exited the to-be-reported quarter with cash and cash equivalents of $632.1 million compared with $352.4 million held at the end of the first quarter of 2024. The long-term debt was $2.6 billion compared with $2.9 billion in the preceding quarter.
Net cash utilized from operating activities was $160.5 million. The free cash flow utilized during the quarter was 163 million. The company repurchased shares worth $150 million in the quarter and returned $55.5 million as dividends to shareholders.
FY24 Guidance
For fiscal 2024, Verisk Analytics expects revenues of $2.84-$2.90 billion. The mid-point ($2.87 billion) of the guided range is lower than the Zacks Consensus Estimate of $2.89 billion. Adjusted EBITDA is expected to be $1.54-$1.60 billion. The adjusted EBITDA margin is expected to be 54-55%. Adjusted EPS growth is anticipated 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 $6.55.
Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed second-quarter 2024 results.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate pegged at $2.3 billion.