The analyst expects 2Q22 revenues modestly below consensus as the tailwinds from strong insurance premium growth, international travel, and a potential uptick in auto insurance are more than offset by weakness in workers’ comp, difficult comps from the Texas freeze, and the impact of Russia on Energy.
Sabadra adds that 2Q22 margins will likely be impacted by the stranded costs and similar margin headwinds in 1Q22; however, the financial divestiture should drive higher consolidated margins.
The analyst mentions that the defensive end-market and portfolio rationalization position the stock well in a choppy tape.
Price Action: VRSK shares are trading higher by 1.11% at $170.82 on the last check Wednesday.
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