Verisk Earnings & Revenues Surpass Estimates in Q1, Increase Y/Y

Verisk VRSK has reported impressive first-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

VRSK’s adjusted earnings were $1.73 per share, surpassing the Zacks Consensus Estimate by 3.6% and increasing 6.1% from the year-ago quarter. Total revenues of $753 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.

VRSK shares have gained 21.1% over the past year, outperforming the 11.2% rally of the industry it belongs to and 8.3% growth of the Zacks S&P 500 Composite.

Verisk Analytics, Inc. Price, Consensus and EPS Surprise

Quarterly Details of Verisk

Underwriting and Rating revenues registered a year-over-year increase of 6.8% on a reported basis and 7.2% at organic constant currency (OCC) to $532 million, surpassing our estimate of $528.2 million. Claim revenues increased 7.5% on a reported basis and 9.6% at OCC to $221 million, and beat our estimate of $220.4 million.

Adjusted EBITDA grew 9.5% from the year-ago quarter on a reported and at OCC basis to $417 million, surpassing our estimate of $413.8 million. The adjusted EBITDA margin was 55.3%, increasing from the year-ago quarter’s 54%.

Verisk exited the reported quarter with cash and cash equivalents of $1.1 billion compared with $458 million at the end of the fourth quarter of 2024. The long-term debt was $3.2 billion compared with $2.5 billion in the preceding quarter.

Net cash utilized from operating activities was $444.7 million. The free cash flow used during the quarter was $391 million. The company repurchased shares worth $170.1 million in the quarter and returned $63 million as dividends to shareholders.

VRSK’s 2025 Guidance

For 2025, Verisk expects revenues of $3.03-$3.08 billion. The midpoint of the guided range (3.06 billion) is below the Zacks Consensus Estimate of $3.07 billion. Adjusted EBITDA is expected to be $1.67-$1.72 billion. The adjusted EBITDA margin is anticipated to be 55-55.8%. Adjusted earnings per share (EPS) growth is expected between $6.8 and $7.10. The mid-point ($6.95) of the company’s guided range is lower than the consensus estimate for EPS of $7.01.

Verisk carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

S&P Global Inc. SPGI reported impressive first-quarter 2025 results.

SPGI’s adjusted EPS of $4.37 surpassed the Zacks Consensus Estimate by 3.6% and gained 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $3.8 billion beat the consensus estimate by 2% and grew 8.3% year over year.

ABM ABM posted impressive first-quarter fiscal 2025 results.

ABM’s EPS (excluding 19 cents from non-recurring items) was 87 cents, which outpaced the Zacks Consensus Estimate by 11.5% and gained 1.2% year over year. Total revenues of $2.1 billion surpassed the consensus mark by a slight margin and increased 2.2% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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