RBC Capital analysts provided their views on Verisk Analytics (NASDAQ:VRSK) ahead of the company’s upcoming Q1/23 earnings, scheduled to be reported on May 3.
The analysts expect organic growth to improve throughout fiscal 2023 as the headwinds in the auto underwriting and marketing moderate, workers’ compensation improves, and robust pricing tailwinds above the premium growth.
According to the analysts, the recent investor day reinforced the results-driven culture under the new management team, focusing on growth while balancing investments.
The analysts conservatively estimate Q1/23 revenue of $629 million, slightly below the Street estimate of $633 million, as their Underwriting & Ratings revenues of $449 million are in line with the Street but their Claims revenue estimate of $180 million is modestly below the Street estimate of $183 million. The analysts expect Q1 EBITDA of $317 million and EPS of $1.15, below the Street estimate of $323 million and $1.19, due to higher stranded costs from the Energy divestiture.