Verisk Analytics Sells Marketing Solutions Business to ActiveProspect

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Fair Isaac Corporation and the rest of the data & business process services stocks fared in Q3.

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 11 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.

Fair Isaac Corporation

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Fair Isaac Corporation reported revenues of $515.8 million, up 13.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ ARR estimates.

Fair Isaac Corporation delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.3% since reporting and currently trades at $1,650.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Planet Labs achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 55.7% since reporting. It currently trades at $20.39.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.8% since the results and currently trades at $221.09.

Read our full analysis of Verisk’s results here.

ADP

Processing one out of every six paychecks in the United States, ADP provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

ADP reported revenues of $5.18 billion, up 7.1% year on year. This print topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is down 9.5% since reporting and currently trades at $253.10.

Read our full, actionable report on ADP here, it’s free for active Edge members.

Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This result surpassed analysts’ expectations by 3.4%. It was a stunning quarter as it also produced a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 1.4% since reporting and currently trades at $224.26.

Read our full, actionable report on Broadridge here, it’s free for active Edge members.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how data & business process services stocks fared in Q3, starting with SS&C .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 11 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.

SS&C

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.57 billion, up 7% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ billings estimates.

“SS&C reported record adjusted revenues of $1,569 million and adjusted consolidated EBITDA of $619 million. These numbers attest to the company’s long-term financial and operating strength. The 22% increase to $1,101 million in operating cash flow through three quarters gives us flexibility to pursue growth opportunities as we continue to pay down debt and repurchase shares,” says Bill Stone, Chairman and Chief Executive Officer.

Interestingly, the stock is up 7.6% since reporting and currently trades at $87.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 50.5% since reporting. It currently trades at $19.70.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.4% since the results and currently trades at $224.25.

Read our full analysis of Verisk’s results here.

Fair Isaac Corporation

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Fair Isaac Corporation reported revenues of $515.8 million, up 13.6% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ ARR estimates.

Fair Isaac Corporation had the weakest full-year guidance update among its peers. The stock is up 3.4% since reporting and currently trades at $1,685.

Read our full, actionable report on Fair Isaac Corporation here, it’s free for active Edge members.

Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This result topped analysts’ expectations by 3.4%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 1.3% since reporting and currently trades at $224.15.

Read our full, actionable report on Broadridge here, it’s free for active Edge members.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at data & business process services stocks, starting with Equifax .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 10 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.

Equifax

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Equifax reported revenues of $1.54 billion, up 7.2% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ EPS guidance for next quarter estimates.

"Equifax delivered strong third quarter revenue of $1.545 billion, up 7% on both a reported and local currency basis, that was $25 million above the midpoint of our July Guidance. This was led by strong 13% U.S. Mortgage revenue growth, strong Workforce Solutions Government vertical results, and continued momentum in New Product Innovation with a Vitality Index of 16% despite headwinds from the U.S. Mortgage and Hiring markets. Workforce Solutions delivered 5% revenue growth, driven by Verification Services revenue growth of 5% led by Non-Mortgage revenue growth of 7% from strong high single digit growth in Government and double digit growth in Consumer Lending businesses. USIS delivered strong revenue growth of 11%, well above their 6 to 8% Long Term Financial Framework. USIS revenue growth was led by very strong 26% Mortgage revenue growth and Non-Mortgage revenue growth of 5%. International delivered 7% local currency revenue growth led by Latin America and Canada. We were pleased with the strong Equifax results in a challenging market environment," said Mark W. Begor, Equifax Chief Executive Officer.

Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $220.50.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 54.2% since reporting. It currently trades at $20.19.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5% since the results and currently trades at $220.45.

Read our full analysis of Verisk’s results here.

TransUnion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.17 billion, up 7.8% year on year. This print beat analysts’ expectations by 3.2%. It was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The stock is up 9% since reporting and currently trades at $87.97.

Read our full, actionable report on TransUnion here, it’s free for active Edge members.

CoStar

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

CoStar reported revenues of $833.6 million, up 20.4% year on year. This number surpassed analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is down 14.6% since reporting and currently trades at $66.81.

Read our full, actionable report on CoStar here, it’s free for active Edge members.