It has been about a month since the last earnings report for Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) . Shares have added about 4% 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 drivers.

Verisk Q2 Earnings Surpass Estimates

Verisk Analytics Inc. 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.

Quarter 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 adjusted EBITDA margin is expected to be 54-55%. Adjusted EPS growth is anticipated between $6.3 and $6.6.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Verisk has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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 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.

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 3.6%. The company reported its results for the quarter ended June 2024 more than a month ago.

S&P Global reported revenues of $3.55 billion in the last reported quarter, representing a year-over-year change of +14.5%. EPS of $4.04 for the same period compares with $3.12 a year ago.

For the current quarter, S&P Global is expected to post earnings of $3.38 per share, indicating a change of +5.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for S&P Global. Also, the stock has a VGM Score of D.