Verisk Analytics is a specialized consulting business. Its main strength is data analytics and predictive analytics. Verisk Analytics is the most significant player in the property and casualty sub-sector. It provides solutions to the 100 largest P/C insurance companies. Verisk Analytics has performed exceptionally well over the past decade. It has grown its earnings from $1.6 in 2011 to $4.3 in 2020, representing a CAGR of over 10%. It is among the best consulting services stock that investors can consider buying.
Verisk Analytics Announces Q12021 Earnings Results
Verisk Analytics released its first-quarter 2021 earnings numbers on 4th May 2021. Revenue was up 5.3% year-on-year from $690 million in Q12020 to $726 million in Q12021. Net income was slightly down from $194 million in Q12020 to $203 million. Diluted adjusted earnings per share were up from $1.17 in Q12020 to $1.23 in Q12021. The free cash flow for the quarter also increased substantially from $310 million in Q12020 to $390 million in Q12021. The insurance segment, the largest for Verisk, saw its revenues go up by 8.1%, from $495 million in Q12020 to $536 million in Q12021. The second-largest segment is the energy & specialized segment, and its revenue went up marginally by 0.6%, from $154 million in Q12020 to $156 million. And finally, the financial services segment saw its revenues drop from $40 million in Q12020 to $34 million.
Company CEO Scott Stephenson said, “In all circumstances, we are receiving feedback that Verisk is a trusted and differentiated partner and that our solutions and innovations play a large and increasing role in our customer’s journeys to becoming more digitally engaged, more automated, and more efficient.” Verisk remains one of the best consulting stocks to buy.
Best Consulting Services Stock
Verisk Analytics’ stock closed above the $172-mark on 4th June 2021. It is up 120% over the past five years. Over a more extended 10-year period, the stock is up 400%, which represents a healthy CAGR of over 16%.