Verra Mobility Q2 revenue beats estimates
Overview
Verra Mobility Q2 revenue rises 6% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reflecting strong operational performance
Company reaffirms 2025 full-year guidance despite potential travel demand challenges
Outlook
Verra Mobility reaffirms 2025 revenue guidance of $925 mln to $935 mln
Company maintains 2025 Adjusted EBITDA guidance of $410 mln to $420 mln
Verra Mobility expects 2025 Adjusted EPS of $1.30 to $1.35
Company anticipates 2025 Free Cash Flow of $175 mln to $185 mln
Result Drivers
GOVERNMENT SOLUTIONS - Revenue growth driven by expansion of enforcement programs, including bus lane and school bus stop arm initiatives
COMMERCIAL SERVICES - Increased product adoption and tolling activity contributed to revenue growth, particularly in European operations
PARKING SOLUTIONS - Revenue decline attributed to decreased subscription and professional services revenue, despite increased SaaS offerings
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $236 mln | $232.80 mln (6 Analysts) |
Q2 Adjusted EPS | Beat | $0.34 | $0.33 (7 Analysts) |
Q2 Net Income |
| $38.60 mln |
|
Q2 Adjusted EBITDA | Beat | $105.30 mln | $103.50 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Verra Mobility Corp is $29.75, about 15.5% above its August 5 closing price of $25.14
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release: ID:nPn1y1mMla
