Verisk Analytics Faces Challenges Despite Strong Q3 Results
Company Background and Market Performance
Jersey City, New Jersey-based Verisk Analytics, Inc. (VRSK) specializes in data analytics and technology solutions for the insurance industry. With a market valuation of $41.1 billion, the company provides various services, including statistical, actuarial, and standardized insurance policy programs, along with underwriting information and rating-integrity tools. VRSK serves clients in the property, casualty, and mortgage markets.
Recent Stock Performance
This prominent analytics firm has struggled to keep pace with the broader market over the past year. VRSK shares rose by 21.7%, while the S&P 500 Index ($SPX) experienced a gain of nearly 31.3%. Year-to-date in 2024, the stock climbed 22%, in contrast to the SPX’s 25.5% increase.
Shifting focus to the iShares U.S. Industrials ETF (IYJ), the disparity becomes even clearer. The ETF has surged approximately 35.4% in the last year, with YTD gains of 25.6% outpacing VRSK’s returns.
On October 30, following the release of its Q3 results, VRSK shares rose over 4%. The company’s adjusted earnings per share (EPS) reached $1.67, exceeding Wall Street’s expectation of $1.60. Revenue for the quarter totaled $725.3 million, slightly above the anticipated $723.1 million. Verisk’s outlook for the full year suggests adjusted EPS between $6.30 and $6.60, with projected revenue ranging from $2.8 billion to $2.9 billion.
Analyst Predictions and Consensus Ratings
As the current fiscal year nears its end in December, analysts project VRSK’s EPS to rise by 16.1% to $6.63 on a diluted basis. Historically, the company’s earnings results have shown mixed outcomes; it surpassed expectations in three of the last four quarters but missed on one occasion.
Among the 17 analysts monitoring VRSK, the overall consensus leans toward a “Moderate Buy.” This rating includes seven “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
Price Targets from Analysts
On October 31, JPMorgan Chase & Co. (JPM) analyst Andrew Steinerman reaffirmed a “Buy” rating on VRSK, setting a price target of $300, indicating a potential upside of 2.9% from current prices. The mean price target across analysts stands at $298, representing a 2.2% premium. The highest target of $325 suggests a more ambitious upside potential of 11.5%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data presented are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
