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Verisk Analytics Inc. VRSK reported impressive fourth-quarter 2024 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
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VRSK’s adjusted earnings (excluding 12 cents from non-recurring items) were $1.61 per share, surpassing the Zacks Consensus Estimate by 0.6% and growing 15% from the year-ago quarter. Total revenues of $735.6 million beat the consensus estimate marginally and increased 8.6% on a year-over-year basis.
VRSK shares have rallied 20.8% year over year, outperforming the industry’s 18.6% growth and the Zacks S&P 500 composite’s 18.2% rise.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
Quarterly Details of Verisk Analytics
Underwriting and Rating revenues saw a year-over-year increase of 6.9% on a reported basis and 7% at organic constant currency (OCC) to $512 million, missing our estimate of $514.6 million. Claim revenues grew 13.1% on a reported basis and 12.7% at OCC to $224 million and beat our projection of $214.6 million.
Adjusted EBITDA gained 9.9% from the year-ago quarter on a reported basis and 13.5% at OCC to $398 million, missing our estimate of $412.7 million. The adjusted EBITDA margin was 54.1%, increasing from the year-ago quarter’s 56.6%.
Verisk Analytics exited the reported quarter with cash and cash equivalents of $291.2 million compared with $302.7 million at the end of the fourth quarter of 2023. The long-term debt was $2.6 billion compared with $2.9 billion in the December-end quarter of 2023.
Net cash utilized from operating activities was $255 million. The free cash flow used during the quarter was $200 million. The company repurchased shares worth $300 million in the quarter and returned $54.7 million as dividends to shareholders.
VRSK’s FY25 Guidance
For fiscal 2025, Verisk Analytics expects revenues in the band of $3.03-$3.08 billion. The midpoint of the guided range (3.06 billion) is below the Zacks Consensus Estimate of $3.09 billion. Adjusted EBITDA is expected in the range of $1.67-$1.72 billion. The adjusted EBITDA margin is anticipated to be 55-55.8%. Adjusted EPS growth is expected between $6.8 and $7.10. The midpoint ($6.95) of the company’s guided range is lower than the consensus estimate for EPS of $7.25.
Verisk carries a Zacks Rank #4 (Sell) at present.
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Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.