Latest news with #VRRM
Yahoo
08-05-2025
- Automotive
- Yahoo
Verra Mobility (NASDAQ:VRRM) Exceeds Q1 Expectations
Traffic solutions company Verra Mobility (NYSE:VRRM) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 6.4% year on year to $223.3 million. The company expects the full year's revenue to be around $930 million, close to analysts' estimates. Its non-GAAP profit of $0.30 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Verra Mobility? Find out in our full research report. Verra Mobility (VRRM) Q1 CY2025 Highlights: Revenue: $223.3 million vs analyst estimates of $217 million (6.4% year-on-year growth, 2.9% beat) Adjusted EPS: $0.30 vs analyst estimates of $0.29 (4.5% beat) Adjusted EBITDA: $95.44 million vs analyst estimates of $92.24 million (42.7% margin, 3.5% beat) The company reconfirmed its revenue guidance for the full year of $930 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.33 at the midpoint EBITDA guidance for the full year is $415 million at the midpoint, in line with analyst expectations Operating Margin: 25.7%, in line with the same quarter last year Free Cash Flow Margin: 37.7%, up from 9.6% in the same quarter last year Market Capitalization: $3.55 billion "We delivered a strong first quarter with all key financial measures ahead of our internal expectations," said David Roberts, President and CEO, Verra Mobility. Company Overview Managing over 165 million tolling transactions per year, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways. Sales Growth A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Verra Mobility's sales grew at an exceptional 13.8% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Verra Mobility Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Verra Mobility's annualized revenue growth of 8.2% over the last two years is below its five-year trend, but we still think the results were respectable. We also think Verra Mobility's is one of the better Electrical Systems businesses as many of its peers faced declining sales because of cyclical headwinds.
Yahoo
17-04-2025
- Automotive
- Yahoo
3 Big Reasons to Love Verra Mobility (VRRM)
What a brutal six months it's been for Verra Mobility. The stock has dropped 21% and now trades at $21.92, rattling many shareholders. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Following the pullback, is now the time to buy VRRM? Find out in our full research report, it's free. Managing over 165 million tolling transactions per year, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Verra Mobility grew its sales at an exceptional 14.4% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers. Cost of sales for an industrials business is usually comprised of the direct labor, raw materials, and supplies needed to offer a product or service. These costs can be impacted by inflation and supply chain dynamics. Verra Mobility has best-in-class unit economics for an industrials company, enabling it to invest in areas such as research and development. Its margin also signals it sells differentiated products, not commodities. As you can see below, it averaged an elite 62.3% gross margin over the last five years. That means Verra Mobility only paid its suppliers $37.73 for every $100 in revenue. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Verra Mobility has shown terrific cash profitability, putting it in an advantageous position to invest in new products, return capital to investors, and consolidate the market during industry downturns. The company's free cash flow margin was among the best in the industrials sector, averaging 19.6% over the last five years. These are just a few reasons why we're bullish on Verra Mobility. With the recent decline, the stock trades at 16.4× forward price-to-earnings (or $21.92 per share). Is now a good time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
