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Verisk (VRSK) to Report Q4 Earnings: What's in the Offing?

Verisk Analytics, Inc. VRSK is scheduled to report fourth-quarter 2020 results on Feb 23, after market close.

While strength across Insurance, and Energy and Specialized Markets segments is likely to have boosted the company’s top line, the bottom line is likely to have been positively impacted by cost discipline in the business and coronavirus-led reduction in travel expenses.

Let's check out how things have shaped up for the announcement.

Segmental Growth to Drive the Top Line

Verisk’s revenues are likely to have been driven by strength across Insurance, and Energy and Specialized Markets segments. The Zacks Consensus Estimate for fourth-quarter 2020 revenues stands at $716.72 million, indicating growth of 5.9% from the year-ago reported figure.

The consensus estimate for Insurance segment revenues is pegged at $501 million, indicating growth of 6.8% from the prior-year reported figure. Within the segment, underwriting and rating revenues are likely to have benefited from an annual increase in prices derived from continued enhancements of the solutions’ contents within the industry-standard insurance programs, sale of expanded solutions to existing customers in commercial and personal lines, and contributions from catastrophe-modeling services. Claims revenues might have been aided by repair-cost-estimating solutions revenues, claims analytics revenues, and workers compensation claims resolution services.

The consensus mark for Energy and Specialized Markets segment revenues is pegged at $168 million, indicating 4.3% increase from the year-ago reported figure. The segment is expected to have benefited from the Genscape acquisition, environmental health and safety-service solutions, core research, and weather analytics solutions.

The consensus estimate for Financial Services segment revenues is pegged at $46.84 million, indicating year-over-year decline of 1.2%. Decline in the company’s spend informed analytic solutions arising from the COVID-19 pandemic and the recent dispositions might have weighed on segmental revenues.

Bottom Line to Improve Year Over Year

Verisk’s bottom line is likely to have benefited from cost discipline in the business, coronavirus-led reduction in travel expenses and lower average share count. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.31 per share, indicating growth of 15.9% from the year-ago quarter’s reported figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Verisk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Verisk has an Earnings ESP of 0.00% and a Zacks Rank #3.

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on fourth-quarter 2020 earnings.

TransBlueTBI has an Earnings ESP of +75.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rocket Companies RKT has an Earnings ESP of +3.12% and a Zacks Rank #2.

WEX WEX has an Earnings ESP of +0.27% and a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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