Verisk Analytics, Inc. (NASDAQ: VRSK) stock lost over 2% on 30th October, 2019 (as of 10:18 am GMT-4; Source: Google finance) after the company posted mixed results for the third quarter of FY 19. Net income was $33 million for the third quarter of 2019, down 80.2%. Adjusted EBITDA was $309 million for the quarter, up 9.0%, and up 7.7% on an OCC basis. The Company has booked a $125 million reserve for litigation related with the remote imagery business. The company has generated the net cash provided by operating activities of $214 million for the third quarter of 2019, which is down 5.7%. Free cash flow also decreased by 10.8% to $153 million.
VRSK in the third quarter of FY 19 has reported the adjusted earnings per share of $1.12, missing the analysts’ estimates for the adjusted earnings per share of $1.13, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9 percent to $652.70 million in the third quarter of FY 19. There is 7.6% growth in the revenue on an organic constant currency (OCC) basis. Both revenue and EBITDA growth in the third quarter are due to the continued strength in the Insurance segment and strong improvement in Energy and Specialized Markets.
Moreover, for Insurance segment, the revenue increased 9.2% in the third quarter of 2019 and 7.7% on an OCC basis. Underwriting & rating revenue rose 8.8% in the third quarter and 7.9% on an OCC basis, mainly due to rise in the industry-standard insurance programs, property-specific underwriting solutions, and catastrophe modeling solutions. Claims revenue rose 9.8% in the third quarter and 7.4% on an OCC basis, mainly due to growth in claims analytics revenue and repair cost estimating solutions revenue.
Energy and Specialized Markets segment revenue grew 11.6% in the third quarter and 8.7% on an OCC basis, mainly due to increases in market and cost intelligence solutions and core research and consulting revenues. Financial Services segment revenue rose 0.1% in the third quarter and 2.7% on an OCC basis, resulting mainly due to increases in enterprise data management and fraud and credit risk management solutions offset by decreases in portfolio management from nonrecurring consulting revenues.
Additionally, the company has already paid a cash dividend of 25 cents per share on September 30, 2019 and has declared the cash dividend of 25 cents per share payable on December 31, 2019. The Company has repurchased $75 million of its shares for the third quarter ended September 30, 2019.