Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering VERRA MOBILITY CORP (VRRM) , which belongs to the Zacks Internet - Software industry.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.61%, on average, in the last two quarters.For the last reported quarter, Verra Mobility came out with earnings of $0.33 per ...

Timed with Distracted Driving Awareness Month, the survey found two-thirds of Americans self-reported that they have not driven distracted in the past year, yet 89% witness speeding and reckless driving behavior weekly More than 75% of Americans support automated technology to keep school children safer MESA, Ariz., April 3, 2025 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, released results from a survey of 2,000 Americans aged 18+ wh ...

Verra Mobility is benefiting from strong travel demand, growth in electronic tolling infrastructure, and expanding automated photo enforcement programs, particularly in government solutions and commercial services. VERRA MOBILITY CORP (VRRM) shares rallied 11.5% in the last trading session to close at $22.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.8% loss over the past four weeks. The stock curren ...

VERRA MOBILITY CORP (VRRM) has been on a downward spiral lately with significant selling pressure. After declining 19.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether ...

Verizon Connect customers will receive access to Verra Mobility's managed tolling, violations and title and registration servicesMESA, Ariz., March 18, 2025 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today a partnership with Verizon Connect, one of the largest providers of advanced GPS fleet tracking solutions. Through the partnership, new and existing Verizon Connect customers will have easy and direct access to Verra Mobi ...

Investors interested in Internet - Software stocks are likely familiar with VERRA MOBILITY CORP (VRRM) and Adyen N.V. Unsponsored ADR (ADYEY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision tre ...

Core Viewpoint - Verra Mobility Corp (VRRM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Verra Mobility is projected to earn $1.29 per share for the fiscal year ending December 2025, representing a year-over-year increase of 4.9% [8]. - Over the past three months, the Zacks Consensus Estimate for Verra Mobility has risen by 0.3%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, suggesting superior earnings estimate revisions [9][10]. - The upgrade of Verra Mobility to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Consolidated revenue growth of 5% in Q4 2024, adjusted EBITDA increased by 12%, and adjusted EPS rose by 38% compared to the prior year [8][30] - Free cash flow for Q4 was $22 million, slightly above expectations, with a net leverage of 2.4x at year-end [8][46] - Reported a net loss of $67 million for Q4, primarily due to a $97 million goodwill impairment charge [33][34] Business Line Data and Key Metrics Changes - Commercial Services revenue and segment profit increased by approximately 4% year-over-year, impacted by a $3 million prior period adjustment related to tolling activity [9][31] - Government Solutions service revenue grew by 5% year-over-year, with total revenue up by 10%, driven by a $5 million increase in product sales [10][41] - T2 Parking Solutions revenue declined by about 13% for the quarter, with segment profit down to $3 million [11][43] Market Data and Key Metrics Changes - TSA passenger volume increased by about 5% in 2024, indicating strong leisure and business travel demand [12] - Cashless toll penetration increased from 67% to about 70% in 2024, reflecting ongoing strength in electronic tolling infrastructure [14] - New legislation in 2024 is expected to create a total addressable market of approximately $185 million, with potential expansion to over $300 million [15][16] Company Strategy and Development Direction - The company aims to stabilize the Parking Solutions business and anticipates flat revenue in 2025, with a focus on returning to growth in 2026 [23][24] - Continued investment in capital allocation, with $200 million deployed for share repurchases in 2024 [24][25] - The company expects to deliver revenue growth consistent with a long-term outlook of 6% to 8%, albeit at the low end of that range in 2025 [26][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resilient travel demand and ongoing strength in Commercial Services [27][60] - Anticipated revenue growth in Government Solutions driven by strong sales bookings and a high contract renewal rate [18][28] - The company remains optimistic about achieving 2026 revenue and adjusted EBITDA targets set during the 2022 Investor Day [60] Other Important Information - The company recorded a non-cash impairment of goodwill related to the T2 business to align carrying value with the current environment [21][44] - The company has maintained significant liquidity with an undrawn credit revolver and successfully refinanced term loan debt, lowering borrowing costs [46][49] Q&A Session Summary Question: Follow-up on Commercial Services business and travel trends - Management expects TSA volume to average 102.5% for 2025, with a sequential ramp-up in travel volume anticipated [65][66] Question: Update on Government Services business and contract win rates - Management indicated they are winning more than their fair share of contracts and expect revenue to build over the next 12 to 18 months [71][72] Question: Timing for clarity on NYC RFP outcome - Management stated that clarity on the NYC RFP is expected in Q2, dependent on the city's decision-making [81] Question: Margin expansion opportunities looking into 2026 - Management noted that margins may remain under pressure due to investments in new geographies and ERP systems, but expect to maintain a 30% margin business in the long term [87] Question: Potential for M&A opportunities - Management is actively evaluating M&A opportunities across connected vehicle and urban mobility sectors, maintaining price discipline [90] Question: Speed camera pipeline and bookings outlook - Management confirmed that the pipeline remains strong, but bookings for 2025 are uncertain and will depend on the ability to convert opportunities into revenue [94] Question: Technology investments for customer needs - Management highlighted ongoing product engineering efforts to enhance customer support and technology deployment [97] Question: Confidence in the Parking Solutions business turnaround - Management expressed confidence in the growth potential of the Parking Solutions market, despite recent execution challenges [113] Question: Share repurchase strategy in 2025 - Management confirmed that share repurchases will continue to be opportunistic based on cash flow generation and M&A pipeline [116] Question: Trends in international markets and cashless adoption - Management noted positive trends in cashless tolling adoption in Europe, with several new toll roads transitioning to cashless systems [120]

Group 1: Earnings Performance - Verra Mobility Corp (VRRM) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.24 per share a year ago, representing a 10% earnings surprise [1] - The company posted revenues of $221.5 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.01%, and an increase from year-ago revenues of $211.01 million [2] - Over the last four quarters, Verra Mobility has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Group 2: Stock Performance and Outlook - Verra Mobility shares have increased approximately 7.2% since the beginning of the year, compared to the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $220.95 million, and for the current fiscal year, it is $1.28 on revenues of $934.31 million [7] Group 3: Industry Context - The Security and Safety Services industry, to which Verra Mobility belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Verra Mobility's stock performance [5][6]

Revenue and Income - Total revenue increased by $61.9 million, or 7.6%, from $817.3 million in fiscal year 2023 to $879.2 million in fiscal year 2024[201]. - Service revenue increased by $58.1 million, or 7.4%, to $841.7 million for fiscal year 2024 from $783.6 million in fiscal year 2023, representing 95.7% of total revenue[228]. - Government Solutions service revenue rose by $23.9 million to $367.9 million in fiscal year 2024, driven by the expansion of speed and bus lane programs, contributing approximately $17.1 million to the increase[229]. - Product sales increased by $3.8 million year-over-year to $37.5 million in fiscal year 2024, primarily due to an $8.6 million increase in sales to Government Solutions customers[231]. - Net income decreased by $25.6 million, or 44.8%, to $31.4 million in fiscal year 2024 from $57.0 million in fiscal year 2023[227]. - Net income for fiscal year 2024 was $31.4 million, a decrease of $25.6 million compared to $57.0 million in 2023, primarily due to goodwill impairment[244]. Expenses and Costs - Total costs and expenses increased by $114.7 million, or 18.2%, from $628.5 million in fiscal year 2023 to $743.2 million in fiscal year 2024[227]. - Operating expenses increased by $22.6 million, or 8.3%, from $273.3 million in fiscal year 2023 to $295.9 million in fiscal year 2024, with wages expense accounting for a significant portion of the increase[234]. - Selling, general and administrative expenses decreased by $3.5 million to approximately $195.1 million for fiscal year 2024 compared to $198.6 million for fiscal year 2023[235]. Cash Flow and Financing - Cash flows from operating activities were $223.6 million for fiscal year 2024, compared to $206.1 million for fiscal year 2023[201]. - Cash provided by operating activities rose by $17.5 million to $223.6 million in fiscal year 2024, despite a decrease in net income[256]. - Cash used in investing activities was $69.7 million in fiscal year 2024, primarily for purchases in the Government Solutions business[257]. - The company repurchased approximately 7.9 million shares for $200.0 million during fiscal year 2024[201]. - Share repurchases totaled $200.0 million during the year ended December 31, 2024, with all repurchased shares subsequently retired[254]. - The company refinanced its debt in fiscal year 2024, reducing the interest rate by an aggregate of 111.4 basis points[202]. - Interest expense, net decreased by $12.8 million from $86.7 million in fiscal year 2023 to $73.9 million in fiscal year 2024, attributed to voluntary principal prepayments and a reduction in interest rates[237]. - Interest expense for fiscal year 2024 was $73.9 million, a decrease from $86.7 million in 2023[273]. Goodwill and Impairment - A goodwill impairment of $97.1 million was recorded in the Parking Solutions segment during fiscal year 2024[209]. - Goodwill impairment of $97.1 million was recorded in fiscal year 2024 due to the assessment of goodwill impairment in the Parking Solutions segment[236]. - The company recorded a goodwill impairment of $97.1 million in the Parking Solutions segment during fiscal year 2024 due to lower revenue growth and higher customer churn[282]. - The company performed a quantitative impairment test for the Parking Solutions reporting unit, which indicated that its carrying value exceeded the estimated fair value[282]. - The company recorded a $0.2 million impairment related to the write-down of installation and service parts during the year ended December 31, 2024[283]. - The company has four reporting units for assessing potential impairment of goodwill: Commercial Services, Government Solutions North America, Government Solutions International, and Parking Solutions[280]. Tax and Other Income - Other income, net increased to $19.0 million in fiscal year 2024 from $11.1 million in 2023, driven by a $5.6 million tax settlement payment recorded in 2023 and increased volume rebates[242]. - The effective tax rate for fiscal year 2024 was 60.2%, significantly higher than 34.5% in 2023, primarily due to permanent differences related to mark-to-market adjustments[243]. Operational Highlights - TSA Passenger Volume increased approximately 5% in fiscal year 2024 compared to fiscal year 2023, contributing to revenue growth in the Commercial Services segment[212]. - Approximately 70% of all toll roadways in the United States relied on cashless or electronic payment methods in fiscal year 2024[213]. - The company generated service revenue through the operation and maintenance of photo enforcement systems, with revenue drivers including the number of systems installed[216]. - The company executed a one-year contract extension with NYCDOT that expires on December 31, 2025, allowing continued use of its automated enforcement program[207]. Debt and Interest Rate Management - Total principal outstanding on the 2021 Term Loan was $695.6 million as of December 31, 2024, following early repayments of $9.0 million in 2024 and $172.5 million in 2023[262]. - As of December 31, 2024, the company had $74.4 million available for borrowing under its Revolver, net of letters of credit[248]. - The company recorded a $1.7 million loss on extinguishment of debt in fiscal year 2024, compared to a $3.5 million loss in 2023[263]. - As of December 31, 2024, the outstanding balance of the 2021 Term Loan was $695.6 million, with an interest rate of 6.6%[288]. - Each 1% movement in interest rates will result in an approximately $7.0 million change in annual interest expense[289]. - The company has a cancellable interest rate swap agreement to hedge exposure to interest rate fluctuations associated with the 2021 Term Loan[290]. Valuation and Estimation Methods - The company utilizes a discounted cash flow method and market approach to estimate the fair value of its reporting units[281]. - The company reviews historical credit losses and customer payment trends to develop loss rate estimates for receivables[279]. - The company applies judgment in determining the standalone selling price for performance obligations in customer arrangements[276].