Verra Mobility (NASDAQ:VRRM) Announces Earnings Results

Key Points

• Verra Mobility beat quarterly expectations: The company reported adjusted EPS of $0.36, exceeding the $0.26 consensus estimate, while revenue of $258.88 million topped forecasts of $240.57 million.
• Despite the earnings beat, revenue declined 1.2% year over year, and the stock fell $0.56 to $2.78 during Friday trading. Shares remain near their 52-week low of $2.60.
• Analyst sentiment remains cautious: Nine analysts rate the stock Hold and one rates it Sell, producing an overall “Reduce” rating and a consensus price target of $6.83.

Verra Mobility (NASDAQ:VRRM - Get Free Report) posted its earnings results on Friday. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.10, FiscalAI reports. The company had revenue of $258.88 million for the quarter, compared to analyst estimates of $240.57 million. Verra Mobility had a net margin of 4.40% and a return on equity of 64.39%. Verra Mobility's revenue was down 1.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.37 EPS.

Verra Mobility Price Performance

VRRM traded down $0.56 during midday trading on Friday, reaching $2.78. 11,433,637 shares of the company's stock were exchanged, compared to its average volume of 4,482,940. Verra Mobility has a 1-year low of $2.60 and a 1-year high of $23.72. The stock has a market capitalization of $421.90 million, a PE ratio of 10.68 and a beta of 0.42. The company has a debt-to-equity ratio of 4.58, a current ratio of 2.06 and a quick ratio of 1.96. The business's 50-day moving average price is $3.47 and its 200 day moving average price is $9.69.

Analysts Set New Price Targets

VRRM has been the topic of several recent analyst reports. Morgan Stanley set a $5.00 price objective on shares of Verra Mobility in a report on Thursday, August 6th. Zacks Research upgraded shares of Verra Mobility from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 13th. Weiss Ratings reiterated a "sell (d)" rating on shares of Verra Mobility in a research note on Monday, September 14th. UBS Group raised their target price on shares of Verra Mobility from $4.00 to $6.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. cut their price target on shares of Verra Mobility from $6.00 to $5.00 and set a "neutral" rating for the company in a report on Tuesday, October 13th. Nine equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $6.83.

About Verra Mobility

Verra Mobility Corporation NASDAQ: VRRM provides smart mobility technology and services designed to improve transportation safety, efficiency and compliance. The company develops cloud-based solutions that help government agencies, commercial fleets and mobility providers manage transportation-related processes and data.

Its government solutions include automated safety enforcement programs for red-light, speed, school-zone and bus-lane violations, as well as technology supporting school bus safety initiatives.

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