Why Has Verisk Analytics Stock Been Trending Lower?


Verisk Analytics (NASDAQ: VRSK), a data analytics and risk assessment company, has seen its stock price fall by about 10% over the last month following its mixed Q3 earnings report. While the company’s revenues came in slightly ahead of consensus, its Non-GAAP EPS of $1.12 narrowly missed estimates.  Separately, some analysts have also become more circumspect about the company, with investment bank Evercore downgrading the company from Outperform to In-Line. However, the stock remains up by about 30% year-to-date.

We ‘step back’ from these recent swings to review Verisk Analytics performance over the last few years, as a context for what might come next. Our Interactive dashboard Why Has Verisk Analytics Stock Been Declining?, reviews the near term reasons and the big picture.

The context for the last few years:

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A closer look At Verisk Analytics’ Total Revenues over the last few years and the outlook

 

Total Revenues for Verisk Analytics increased from $2.15 Bil in 2017 to $2.40 Bil in 2018; an increase of 11.6%.

This compares with Total Revenues growth of:

  • 23.0% in 2015
  • 13.3% in 2016
  • 7.52% in 2017

We expect Total Revenues growth to be 9.2% in 2019.

A closer look At Verisk Analytics’ Total Expenses over the last few years and the outlook

Total Expense for Verisk Analytics significantly increased from $1.45 Bil in 2017 to $1.68 Bil in 2018; an increase of 15.2%.

This compares with Total Expense growth of:

  • 23.9% in 2015
  • 24.6% in 2016
  • 8.40% in 2017

We expect Total Expense growth to be 3.5% in 2019.

How does Verisk Analytics’ Revenue Growth compare with rivals?

For more details on how Verisk Analytics’ Revenue Growth Compares with rivals CoreLogic and Equifax, view our interactive dashboard analysis.

How has Verisk Analytics’ EBT trended?

EBT for Verisk Analytics increased moderately by 4.15% from $691 Mil in 2017 to $720 Mil in 2018.

We expect EBT to increase by 22.6% to $882 Mil in 2019.

How has Verisk Analytics’ Net Income and EPS trended?

For more information on Verisk Analytics’ Net Income and EPS view our interactive dashboard analysis.

 

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