Verisk Analytics Set to Report Q3 Earnings: Analysts Expect Positive Growth
Valued at a market cap of $38.2 billion, Verisk Analytics, Inc. (VRSK) is a prominent data analytics and technology provider serving the insurance, energy, specialized markets, and financial services sectors. The company offers predictive analytics and decision-support solutions aimed at helping customers enhance risk management and operational efficiency. Located in Jersey City, New Jersey, Verisk is scheduled to unveil its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 30.
In anticipation of this earnings report, analysts forecast that the insurance data provider will achieve a profit of $1.60 per share, reflecting a 5.3% increase from $1.52 per share in the same quarter last year. Verisk has consistently outperformed Wall Street’s bottom-line expectations, having exceeded these estimates in three of the last four quarters, though there was one instance of a miss. In the latest quarter, VRSK surpassed the consensus EPS estimate by 6.8%, driven by robust demand for its analytics products.
Positive Long-Term Forecast for Fiscal 2024
Looking ahead to fiscal 2024, analysts predict VRSK will report an EPS of $6.57, marking a 15.1% rise from $5.71 in fiscal 2023.
Comparison With Market Trends
Verisk Analytics has risen 14.1% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 38.5% gain and the Industrial Select Sector SPDR Fund’s (XLI) 38.9% increase during the same timeframe.
Mixed Reactions Following Q2 Results
Despite posting a better-than-expected Q2 adjusted EPS of $1.74, Verisk’s shares dropped 8.5% on July 31. This decline stemmed from concerns over revenue of $716.8 million, which fell short of consensus estimates and raised questions about growth in critical segments like Underwriting and Rating. Furthermore, the company’s revenue guidance for fiscal 2024, set between $2.8 billion and $2.9 billion, did not meet analyst expectations. Rising operating expenses and a decrease in free cash flow also added to investor concerns.
Cautious Optimism Among Analysts
Overall, analysts hold a cautiously optimistic view on Verisk Analytics stock, assigning a “Moderate Buy” rating. Out of 16 analysts covering the stock, six recommend a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining eight give a “Hold” rating. This analysis reflects a slight improvement compared to three months ago when only five analysts had marked the stock as a “Strong Buy.” The average analyst price target for VRSK is $283.15, indicating a modest potential upside of 5.8% from current price levels.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
