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Valued at a market cap of $38.2 billion, Verisk Analytics, Inc. (VRSK) is a leading data analytics and technology provider in the insurance, energy, specialized markets, and financial services sectors. It delivers predictive analytics and decision-support solutions to help customers optimize risk management and operational workflows. The Jersey City, New Jersey company is expected to release its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 30.
Ahead of this event, analysts expect the insurance data provider to report a profit of $1.60 per share, up 5.3% from $1.52 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. In the most recent quarter, VRSK exceeded the consensus EPS estimate by 6.8% due to strong demand for analytics products.
For fiscal 2024, analysts expect VRSK to report EPS of $6.57, up 15.1% from $5.71 in fiscal 2023.
Verisk Analytics has risen 14.1% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 38.5% gain and the Industrial Select Sector SPDR Fund's (XLI) 38.9% increase over the same period.
Despite reporting better-than-expected Q2 adjusted EPS of $1.74, Verisk's shares dropped 8.5% on Jul. 31 due to concerns about revenue of $716.8 million, which missed consensus estimates and indicated slower growth in key segments like Underwriting and Rating. Additionally, the company's fiscal 2024 revenue guidance range of $2.8 billion - $2.9 billion fell short of analyst expectations, particularly the midpoint. Furthermore, rising operating expenses and a decrease in free cash flow contributed to investor worries.
Overall, analysts' consensus view on Verisk Analytics stock is cautiously optimistic, with 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 configuration is slightly more bullish than three months ago, with five “Strong Buy” ratings on the stock. The average analyst price target for VRSK is $283.15, suggesting a modest potential upside of only 5.8% from the current levels.
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.
