Verisk Analytics VRSK is all set to release its fourth-quarter 2023 results on Feb 21 before the bell.
The company’s track record of beating the Zacks Consensus Estimate, delivering an average earnings surprise of 10.9% over the past four quarters, sets the stage for a highly anticipated earnings call.
Anticipating Q4 Performances
While the Zacks Consensus Estimate for the fourth-quarter revenue stands at $670.2 million, reflecting a 6.3% increase from the year-ago figure, investors are banking on Verisk Analytics’ solid subscription revenues, which contributes 80% of the company’s sales. Factors such as reduced attrition, consolidation, and robust net premium growth are expected to play a pivotal role in boosting the company’s performance.
Stock Analysis Snapshot
The consensus estimate for the bottom line is pegged at $1.42 per share, a slight drop from the previous year. The bottom line is anticipated to be impacted by increased costs.
Forecast Analysis
Based on historical data, our proven model does not conclusively predict an earnings beat for VRSK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) typically ensures greater probability of an earnings beat. In this instance, Verisk Analytics has an Earnings ESP of -1.82% and a Zacks Rank of 3, not aligning with the model’s typically favorable criteria.
Potential Contenders in the Sector
Several stocks in the broader Zacks Business Services sector carry potential for an earnings beat, including GFL Environmental and Nu Holdings Ltd. (NU), both exhibiting favorable numbers according to our model.
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