Verisk Analytics Inc., the supplier of actuarial and risk data to banks and insurers, posted the biggest drop since its 2009 public offering after revenue missed analysts’ estimates as growth slowed in the health segment.
Verisk slumped 8.6 percent to $62 at 4 p.m. in New York. Shares of the Jersey City, New Jersey-based company advanced 22 percent this year, compared with the Standard & Poor’s 500 Index’s 24 percent climb.
Third-quarter revenue of $438.6 million fell short of the average $444.8 million estimate in a Bloomberg survey of 13 analysts. Sales tied to health care at the decision-analytics operation climbed 6.2 percent from the third quarter of 2012 to $73.6 million, the company said in a statement late yesterday. That compares with a 21 percent increase in the second quarter.
“We’d expect this slowdown to generate some concerns and questions,” William Clark, an analyst at Keefe Bruyette & Woods, said in a research note following Verisk’s earnings report. “Certainly something to keep an eye on.”
Net income for the quarter rose 16 percent to $96.4 million on growth in its insurance and financial-services business, Verisk said in the statement.
“Our health-care business delivered growth that was below our plan,” the company said in the statement. “But we remain enthusiastic about our longer-term outlook.”