The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Verisk Analytics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins grew, operating margins grew, net margins shrank.
Verisk Analytics recorded revenue of $398.9 million. The 10 analysts polled by S&P Capital IQ predicted sales of $388.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $340.1 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 $0.54. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.48 for Q3 were 17% higher than the prior-year quarter's $0.41 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 60.7%, 120 basis points better than the prior-year quarter. Operating margin was 38.9%, 30 basis points better than the prior-year quarter. Net margin was 20.8%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $413.7 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $1.52 billion. The average EPS estimate is $1.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 78 members out of 87 rating the stock outperform, and nine members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Verisk Analytics a green thumbs-up, and 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 $51.91.
- Add Verisk Analytics to My Watchlist.