Verisk to Report Q2 Earnings: What's in the Offing?

Verisk Analytics VRSK is scheduled to release its second-quarter fiscal 2024 results on Jul 31, before market open.

VRSK surpassed the Zacks Consensus Estimate in three of the four trailing quarters and missed in one, delivering an earnings surprise of 4.5%, on average.

Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $722.5 million, indicating a 7% increase from the year-ago quarter's actual. Solid growth in underwriting and modest improvement in claims are anticipated to have benefited this segment's revenues. Also, development across the majority of its subscription-based solutions with strong renewals, the expansion of relationships with existing customers, and solid sales of new solutions are likely to have aided this segment.

Our estimate for revenues from the United States is pegged at $594.4 million, implying a rise of 5.5% on a year-over-year basis. We estimate revenues from the U.K. to be $51.4 million, indicating a 14.3% increase from the year-ago quarter's actual. Revenues from Other countries are expected to grow 12.7% from the year-ago quarter's actual to $75.1 million.

The consensus estimate for the bottom line is pegged at $1.6 per share, suggesting an 8% rise from the year-ago quarter's actual.The bottom line is expected to have benefited from margin expansion due to the positive impacts of sales leverage and cost discipline.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for VRSK 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. But that is not the case here.

Verisk Analytics has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season:

Trane Technologies TT: The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $5.1 billion, indicating growth of 9.7% from the year-ago quarter's actual. For earnings, the consensus mark is pegged at $3.1 per share, suggesting a 14.9% rise from the year-ago quarter's reported number. TT surpassed the consensus estimate in the past four quarters, with an average beat of 7.5%.

TT currently has an Earnings ESP of +0.95% and a Zacks Rank of 2.

The company is scheduled to declare its second-quarter results on Jul 31.

Marathon Digital MARA: The Zacks Consensus Estimate for second-quarter revenues is pegged at $161 billion, indicating an increase of 97% from the year-ago quarter's actual. For the bottom line, the consensus mark is pegged at a loss of 19 cents per share compared with a loss of 13 cents per share in the year-ago quarter. MARA has an earnings negative surprise of 224.6%, on average.

MARA currently has an Earnings ESP of +67.57% and a Zacks Rank of 3. The company is scheduled to declare its second-quarter results on Aug 1.

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