UPDATE: Verisk Analytics (VRSK) Tops Q2 EPS by 10c, Revenues Miss
Verisk Analytics (NASDAQ: VRSK) reported Q2 EPS of $1.29, $0.10 better than the analyst estimate of $1.19. Revenue for the quarter came in at $679 million versus the consensus estimate of $686.01 million.
• Consolidated revenues were $679 million, up 4.0%, and up 1.1% on an organic constant currency (OCC) basis for the second quarter of 2020.
• Net income was $179 million, up 19.0% for the second quarter of 2020. Adjusted EBITDA, a non-GAAP measure, was $348 million, up 14.5%, and up 12.4% on an OCC basis.
• Diluted GAAP earnings per share (diluted EPS) were $1.08 for the second quarter of 2020. Diluted adjusted earnings per share (diluted adjusted EPS), a non-GAAP measure, were $1.29.
• Net cash provided by operating activities was $250 million, up 24.6% for the second quarter of 2020. Free cash flow, a non-GAAP measure, was $193 million, up 25.7%.
• The company paid a cash dividend of 27 cents per share on June 30, 2020. The company's Board of Directors approved a cash dividend of 27 cents per share payable on September 30, 2020.
• The company repurchased $75 million of its shares during the second quarter of 2020.
• The company currently has $995 million of undrawn capacity on its revolver and no meaningful maturities until May 2021.
Scott Stephenson, chairman, president, and CEO, said, “Our second quarter results reflect the enduring strength and stability of our business model, and the laser-focus of our over 9,000 Verisk teammates on delivering for our customers as they face new challenges in this environment. Our long-term objectives are unchanged. We remain committed to offering a great customer experience, protecting the health and well-being of our teammates, and continuing to drive our innovation agenda.”
Lee Shavel, CFO and executive vice president, said, “Verisk delivered organic constant currency adjusted EBITDA growth of 12.4%, demonstrating strong operating leverage despite reduced revenue growth this quarter due to the impact of COVID-19. This leverage reflects the responsiveness of our compensation structure and our attention to controlling headcount growth during these uncertain times. We continue to use our strong cash flow to invest in high growth, high return on investment projects that support future growth.”
For earnings history and earnings-related data on Verisk Analytics (VRSK) click here.