Shares of Verisk Analytics (VRSK) plummeted 5.04% in Wednesday's trading session, despite the company reporting better-than-expected second-quarter earnings. The data analytics provider's stock decline was primarily attributed to lowered full-year guidance and a significant acquisition announcement.

Verisk reported second-quarter adjusted earnings per share of $1.88, surpassing the analyst consensus estimate of $1.77. Revenue for the quarter came in at $772.6 million, also beating expectations of $768.7 million. The company achieved a 7.8% year-over-year revenue growth, with organic constant currency revenue growth of 7.9%.

However, investors seemed more focused on Verisk's revised outlook for fiscal year 2025. The company narrowed its guidance for 2025 adjusted earnings per share to between $6.80 and $7.00, down from the previous range of $6.80 to $7.10. This adjustment fell short of analysts' expectations of $7.06 per share, potentially contributing to the stock's sharp decline.

Adding to investor concerns, Verisk announced a definitive agreement to acquire AccuLynx, a software-as-a-service platform for roofing contractors, for $2.35 billion in cash. While the company expects this acquisition to contribute to revenue growth and profit margins, and to be accretive to adjusted earnings by the end of 2026, the hefty price tag may have raised eyebrows among shareholders.

The combination of lowered earnings guidance and a significant cash outlay for the acquisition appears to have overshadowed Verisk's positive quarterly results, leading to its position among the bottom performers in the Nasdaq 100 index on Wednesday. As the market digests these developments, investors will be closely watching how Verisk integrates AccuLynx and whether the company can meet or exceed its revised guidance in the coming quarters.