Why Is Verisk Analytics Stock Trading Lower Today?
Portfolio Pulse from Lekha Gupta
Verisk Analytics, Inc. (NASDAQ:VRSK) shares fell after reporting Q4 FY23 earnings. Despite revenue growth of 7.4% Y/Y to $677.2 million, beating consensus, and adjusted EBITDA increasing 9.0% Y/Y to $362.0 million, adjusted EPS fell 2.1% Y/Y to $1.40, missing estimates. The company also announced a share repurchase of $250 million and an additional $1.0 billion authorization, along with a 15% dividend increase. FY24 guidance was issued with revenue expected between $2.840 billion-$2.900 billion and adjusted EPS of $6.30-$6.60.
February 21, 2024 | 2:48 pm
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NEGATIVE IMPACT
Verisk Analytics reported Q4 FY23 earnings with higher revenue and EBITDA but missed EPS estimates. Announced significant share repurchase and dividend increase. Issued FY24 guidance with expected revenue and EPS.
Despite Verisk's revenue growth and cost discipline leading to increased EBITDA, the stock is trading lower due to the missed EPS estimates, which is a critical metric for investors. The share repurchase and dividend increase indicate company confidence, but the immediate market reaction is negative, likely due to the EPS miss and possibly conservative FY24 guidance compared to estimates.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100