The 10-second takeaway
For the quarter ended March 31 (Q1), Verisk Analytics met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins improved across the board.
Verisk Analytics reported revenue of $346.5 million. The 11 analysts polled by S&P Capital IQ looked for a top line of $349.6 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $312.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.44 for Q1 were 19% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.5%, 130 basis points better than the prior-year quarter. Operating margin was 40.1%, 200 basis points better than the prior-year quarter. Net margin was 21.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $371.9 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.5 billion. The average EPS estimate is $1.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 81 members rating the stock outperform and five members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 20 give Verisk Analytics a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verisk Analytics is outperform, with an average price target of $50.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.