VRRM Earnings Prediction
The chart below shows how VRRM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRRM sees a +0.97% change in stock price 10 days leading up to the earnings, and a +1.32% change 10 days following the report. On the earnings day itself, the stock moves by -0.48%. This data can give you a slight idea of what to expect for the next quarter's release.
VRRM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
225.55M
7.44%
1.40%
Gross Margin
83.28%
2.65%
1.55%
Operating Margin
28.33%
0.50%
3.02%
Net Margin
15.40%
6.65%
0.06%
EPS
0.21
16.67%
5.00%
No Data Available
VRRM Earnings Analysis
Verra Mobility Corporation Class A Common Stock Corporation (VRRM.O) Earnings Conference Call
Positive
2024 Financial Guidance Update: We are reaffirming fully year 2024 revenue, adjusted EBITDA, and adjusted EPS guidance, while increasing the adjusted free cash flow guide to the upper end of the range.
Quarterly Revenue and Profit Growth: Third quarter revenues of $109 million grew 11% over the prior year quarter and segment profit margins of 67% were up about 30 basis points over the last year period, due primarily to the strength in RAC tolling.
Record Free Cash Flow: We generated a record quarter of free cash flow generating $85 million for the third quarter.
Revenue and EBITDA Growth: We expect total revenue growth of approximately 8% and adjusted EBITDA dollar growth of approximately 9% compared to 2023.
Net Debt Reduction: We ended the quarter with a net debt balance of $844 million, down significantly on a sequential basis due to our strong free cash flow generation this quarter.
Negative
Travel Demand Decline: Travel demand has decelerated in September and October, particularly in the last week of September and the second week of October due to the hurricanes.
Passenger Volume Trends: Year-to-date TSA passenger volumes as of September 30th stood at about 106% of 2023 volume for the same period, driven by strong consumer and business demand, however, travel has decelerated recently.
Free Cash Flow Stability: The company continues to generate robust free cash flow, providing optionality for capital allocation, but we are putting measures in place to stabilize the T2 Parking business and rejuvenate its growth trajectory.
Travel Demand Boosts Revenue: The third quarter travel demand drove solid growth in adopted rental agreements and tolls incurred, all of which resulted in a 6% increase in RAC tolling revenue.
Revenue Decline in Q3: The third quarter saw a decline in P2 Systems SaaS and Services revenue by 4% compared to the third quarter of last year.
VRRM FAQs
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VRRM Earning Call Sentiment
Verra Mobility Corporation (VRRM) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VRRM.O
-0.69%Positive
The earnings call indicates strong financial performance with revenue and EPS growth, a robust free cash flow, and reduced net debt. The share buyback authorization adds a positive outlook. Despite some uncertainties in the NYC RFP and incremental costs, the overall sentiment is positive due to optimistic guidance in Government Solutions and a strategic focus on growth and M&A opportunities. Given the market cap of $4.56 billion, the stock is likely to experience a moderate positive movement of 2% to 8% over the next two weeks.
