Verisk (VRSK) To Report Q1 Earnings: Will It Disappoint?
Zacks Investment Research | Apr 25, 2019 04:34AM ET
Verisk Analytics, Inc. (NASDAQ:VRSK) is scheduled to report first-quarter 2019 results on Apr 30, after market close.
While strength across Insurance and Energy and Specialized Markets segments should boost the company’s top line, the bottom line is likely to be positively impacted by solid organic growth and contribution from acquisitions.
So far this year, shares of Verisk have gained 27.9%, outperforming the 23.7% rise of the industry it belongs to and 16.5% increase of the Zacks S&P 500 Composite.
Let’s check out the expectations in detail.
Segmental Growth to Drive the Top Line
The Zacks Consensus Estimate for first-quarter 2019 revenues stands at $620.59 million, indicating growth of 6.8% from the year-ago reported figure. Strength in Insurance and Energy and Specialized Markets segments should boost the top line. The segments are also expected to improve organically as well as on an organic constant-currency basis.
Insurance segment revenues are expected to be driven by strength across its two units — Underwriting & Rating and Claims. While strength in the company’s catastrophe modeling services and underwriting solutions should boost Underwriting & Rating revenues, Claims top line is likely to benefit from repair cost estimating solutions and claims analytics revenues.
Improvement in the energy business’s end market, contributions from environmental health and safety services and weather and climate analytics businesses, and strength in consulting and research businesses are likely to drive Energy and Specialized Markets segment.
The Financial Services segment is likely to be hurt by tough year-over-year comparisons with prior-year implementation revenues as well as some timing differences, which is expected to be partially offset by solid growth in portfolio management solutions and spend informed analytics.
In fourth-quarter 2018, total revenues of $613.9 million increased 7.7% year over year.
Organic Growth & Acquisitions to Drive Bottom Line
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.04 per share, indicating growth of 10.6% from the year-ago quarter. The bottom line should benefit from solid organic growth and contribution from acquisitions, which are likely to be partially offset by higher depreciation and amortization expense and rise in interest expense.
Get The News You Want
In fourth-quarter 2018, adjusted earnings of $1.04 per share decreased 21.8% year over year.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP Filter .
Verisk has a Zacks Rank #4 and an Earnings ESP of -3.85%.
Stocks That Warrant a Look
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:
SailPoint Technologies (NYSE:SAIL) has an Earnings ESP of +100.00% and a Zacks Rank #1. The company is scheduled to report results on May 8. You can see .
EVERTEC (NYSE:EVTC) has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.
Delphi Technologies (NYSE:DLPH) has an Earnings ESP of +1.56% and a Zacks Rank #3. The company is scheduled to report results on May 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft (NASDAQ:MSFT) stock in the early days of personal computers… or Motorola (NYSE:MSI) after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.