Verisk Analytics Sees Positive EPS Growth Amid Market Challenges

Verisk Analytics projects a profit of $1.60 per share for Q4, reflecting a 14.3% increase YoY. The company showed strong performance with a 9% growth in revenue last quarter, yet underperformed against broader market indices. Analysts maintain a 'Moderate Buy' rating.

Date: 24-01-2025

AI Rating: 6

Earnings Per Share (EPS)
Verisk Analytics' projected earnings per share for Q4 is $1.60, a noteworthy 14.3% increase from $1.40 in the previous year's quarter. The EPS for fiscal 2024 is anticipated to rise to $6.63, representing a substantial 16.1% growth from $5.71 in fiscal 2023.

Revenue Growth
For Q3, Verisk reported revenue of $725.3 million, which reflects a 7% increase compared to the year-ago quarter. This positive revenue growth is further supported by a 9.1% increase in subscription revenue, indicating a strong performance amid competitive pressures.

Profit Margins
The adjusted EBITDA margin increased by 120 basis points year-over-year, showcasing the company's effective cost management and competitive revenue generation.

Market Performance
Despite these positive indicators, shares of Verisk Analytics gained only 14.7% over the past year, which is lower than the S&P 500's rise of 25.5%. This could potentially lead to concerns among investors about the company's ability to keep pace with market trends.

Analyst Ratings
Wall Street analysts provide a mixed outlook on Verisk, rating it as a 'Moderate Buy' with a mean price target of $296.88, suggesting that there is limited potential upside from current levels (6.3%). The slight decrease in 'Strong Buy' recommendations could affect investor sentiment.

Stocks: VRSK