Verisk Q2 Profit Drops 10% as Higher Costs Bite, Reaffirms Full-Year View
VRSK sits 31% above its 52-week low of $155.94.
Summary
Verisk's Q2 net income fell 9.8% to $228.6M, with GAAP EPS of $1.75 missing last year's $1.81. Revenue rose 4.4% to $806.3M, but higher interest costs and legal fees from the failed AccuLynx deal weighed on the bottom line. Adjusted EPS of $1.98 beat by a penny, and the company reaffirmed full-year guidance of $7.45-$7.75 EPS on $3.19B-$3.24B revenue. The departure of CIO Nick Daffan, announced yesterday, adds a layer of management uncertainty. With shares near $204 and a $27.8B market cap, the modest miss and reaffirmed outlook may not rattle long-term holders, but the profit decline and cost pressures are a near-term headwind.
At the time of this announcement, VRSK was trading at $204.39 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $27.8B. The 52-week trading range was $155.94 to $300.94. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: dpa-AFX.