The 10-second takeaway
For the quarter ended June 30 (Q2), Verisk Analytics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins dropped, net margins grew.
Verisk Analytics notched revenue of $421.3 million. The 12 analysts polled by S&P Capital IQ expected revenue of $419.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $373.2 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 $0.55. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.53 per share. Non-GAAP EPS of $0.55 for Q2 were 17% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.49 for Q2 were 14% higher than the prior-year quarter's $0.43 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 58.5%, 550 basis points worse than the prior-year quarter. Operating margin was 36.0%, 540 basis points worse than the prior-year quarter. Net margin was 20.0%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $444.2 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.72 billion. The average EPS estimate is $2.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 81 members out of 92 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $65.31.
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