Verisk Q4 Earnings Beat Expectations, Dividend Increased
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy VRSK?
Source: seekingalpha
- Earnings Beat: Verisk reported a Q4 non-GAAP EPS of $1.82, exceeding expectations by $0.21, with revenue of $779 million reflecting a 5.8% year-over-year growth, indicating strong market performance.
- EBITDA Growth: Adjusted EBITDA reached $437 million, up 9.8%, and 6.2% on an OCC basis, demonstrating ongoing improvements in operational efficiency and profitability.
- Strong Cash Flow: Net cash provided by operating activities was $343 million, up 34.4%, while free cash flow was $276 million, a 38.0% increase, providing a solid foundation for future investments and shareholder returns.
- Dividend and Buyback Plans: The Board approved an increase in the cash dividend from $0.45 to $0.50 per share, an 11% rise, and raised the share repurchase authorization to $2.5 billion, reflecting confidence in future growth.
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Analyst Views on VRSK
Wall Street analysts forecast VRSK stock price to rise
12 Analyst Rating
5 Buy
6 Hold
1 Sell
Moderate Buy
Current: 177.300
Low
220.00
Averages
252.89
High
300.00
Current: 177.300
Low
220.00
Averages
252.89
High
300.00
About VRSK
Verisk Analytics, Inc. is a data analytics and technology provider serving clients in the insurance ecosystem. The Company offers predictive analytics and decision support solutions to clients in rating, underwriting, claims, catastrophe, weather risk, and many other fields. Its insurance segment serves its property and casualty insurance customers across personal and commercial lines of business, focusing on insurance programs, the prediction of loss, the selection and pricing of risk, and compliance with their reporting requirements in each United States state in which they operate. It also develops and utilizes machine-learned and artificially intelligent models to forecast scenarios and produce both standard and customized analytics that help its customers better manage their businesses, including detecting fraud before and after a loss event. It owns a SaaS platform that supports an open ecosystem where specialized model partners make their models, hazard data and analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Verisk Scheduled to Announce Q4 Earnings
- Earnings Announcement Date: Verisk (VRSK) is set to release its Q4 2023 earnings on February 18 before market open, with consensus EPS estimate at $1.60, reflecting a 0.6% year-over-year decline, while revenue is projected at $773.74 million, indicating a 5.1% year-over-year growth, showcasing the company's revenue stability.
- Historical Performance Review: Over the past two years, Verisk has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, indicating reliability in financial forecasting, which may bolster investor confidence.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen four upward revisions and three downward revisions, while revenue estimates have experienced three upward revisions and one downward revision, reflecting mixed market sentiment regarding Verisk's future performance, potentially influencing investor decisions.
- Market Sentiment Analysis: Despite Verisk's growth outlook being perceived as mediocre and negative sentiment prevailing, its ongoing investments in technology and AI may provide future growth momentum, especially with the upcoming UBS Global Technology and AI Conference likely to attract more attention.
See More
Verisk Q4 Earnings Beat Expectations, Dividend Increased
- Earnings Beat: Verisk reported a Q4 non-GAAP EPS of $1.82, exceeding expectations by $0.21, with revenue of $779 million reflecting a 5.8% year-over-year growth, indicating strong market performance.
- EBITDA Growth: Adjusted EBITDA reached $437 million, up 9.8%, and 6.2% on an OCC basis, demonstrating ongoing improvements in operational efficiency and profitability.
- Strong Cash Flow: Net cash provided by operating activities was $343 million, up 34.4%, while free cash flow was $276 million, a 38.0% increase, providing a solid foundation for future investments and shareholder returns.
- Dividend and Buyback Plans: The Board approved an increase in the cash dividend from $0.45 to $0.50 per share, an 11% rise, and raised the share repurchase authorization to $2.5 billion, reflecting confidence in future growth.
See More
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- Climate Risk Data Sharing: The collaboration between S&P Global Energy and Verisk integrates climate catastrophe risk data for the first time, enabling the financial and insurance sectors to quantify the financial impacts of future climate events, thereby establishing a new industry benchmark for climate risk management precision.
- Innovative Model Integration: Verisk's climate catastrophe risk data will be integrated into S&P Global's climate risk platform, with projections of future climate events modeled through 2050, assisting insurers in assessing the impact of climate change on portfolio risk and enhancing their adaptive capabilities.
- Enhanced Industry Impact: This partnership not only meets regulatory demands for climate risk disclosure but also provides decision-grade data for banks and asset managers, driving strategic transformations in climate risk management and capital allocation while increasing market transparency.
- Promoting Sustainable Development: By offering comprehensive climate risk analysis, the collaboration between S&P Global and Verisk will help clients transition from reactive climate compliance to proactive resilience, setting a new standard for industry responses to climate change.
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Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
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Verisk Scheduled to Announce Q4 Earnings
- Earnings Announcement Date: Verisk (VRSK) is set to release its Q4 2023 earnings on February 18 before market open, with consensus EPS estimate at $1.60, reflecting a 0.6% year-over-year decline, while revenue is projected at $773.74 million, indicating a 5.1% year-over-year growth, showcasing the company's revenue stability.
- Historical Performance Review: Over the past two years, Verisk has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, indicating reliability in financial forecasting, which may bolster investor confidence.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen four upward revisions and three downward revisions, while revenue estimates have experienced three upward revisions and one downward revision, reflecting mixed market sentiment regarding Verisk's future performance, potentially influencing investor decisions.
- Market Sentiment Analysis: Despite Verisk's growth outlook being perceived as mediocre and negative sentiment prevailing, its ongoing investments in technology and AI may provide future growth momentum, especially with the upcoming UBS Global Technology and AI Conference likely to attract more attention.
See More
Verisk Q4 Earnings Beat Expectations, Dividend Increased
- Earnings Beat: Verisk reported a Q4 non-GAAP EPS of $1.82, exceeding expectations by $0.21, with revenue of $779 million reflecting a 5.8% year-over-year growth, indicating strong market performance.
- EBITDA Growth: Adjusted EBITDA reached $437 million, up 9.8%, and 6.2% on an OCC basis, demonstrating ongoing improvements in operational efficiency and profitability.
- Strong Cash Flow: Net cash provided by operating activities was $343 million, up 34.4%, while free cash flow was $276 million, a 38.0% increase, providing a solid foundation for future investments and shareholder returns.
- Dividend and Buyback Plans: The Board approved an increase in the cash dividend from $0.45 to $0.50 per share, an 11% rise, and raised the share repurchase authorization to $2.5 billion, reflecting confidence in future growth.
See More
S&P 500 Futures Increase in Pre-Market Activity; Global-E Online and Garmin Take the Lead
Market Opening: U.S. stock markets are set to open in two hours.
Global-E Online Ltd. Performance: Global-E Online Ltd. (GLBE) saw an increase of 18.3% in pre-market trading.
Garmin Ltd. Performance: Garmin Ltd. (GRMN) experienced a rise of 11.8% in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
Analysis and Outlook: Saved by the Bell
- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
See More
S&P Global and Verisk Collaborate to Enhance Climate Risk Analytics
- Climate Risk Data Sharing: The collaboration between S&P Global Energy and Verisk integrates climate catastrophe risk data for the first time, enabling the financial and insurance sectors to quantify the financial impacts of future climate events, thereby establishing a new industry benchmark for climate risk management precision.
- Innovative Model Integration: Verisk's climate catastrophe risk data will be integrated into S&P Global's climate risk platform, with projections of future climate events modeled through 2050, assisting insurers in assessing the impact of climate change on portfolio risk and enhancing their adaptive capabilities.
- Enhanced Industry Impact: This partnership not only meets regulatory demands for climate risk disclosure but also provides decision-grade data for banks and asset managers, driving strategic transformations in climate risk management and capital allocation while increasing market transparency.
- Promoting Sustainable Development: By offering comprehensive climate risk analysis, the collaboration between S&P Global and Verisk will help clients transition from reactive climate compliance to proactive resilience, setting a new standard for industry responses to climate change.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
