Breaking News
0

VeriSign (VRSN) To Report Q4 Earnings: What's In The Cards?

By Zacks Investment ResearchStock MarketsFeb 03, 2019 11:25PM ET
www.investing.com/analysis/verisign-vrsn-to-report-q4-earnings-whats-in-the-cards-200383326
VeriSign (VRSN) To Report Q4 Earnings: What's In The Cards?
By Zacks Investment Research   |  Feb 03, 2019 11:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

VeriSign (NASDAQ:VRSN) is set to report fourth-quarter 2018 results on Feb 7.

The company has delivered average four-quarter positive earnings surprise of 1.7%. In the last reported quarter, VeriSign's earnings of $1.23 per share topped the Zacks Consensus Estimate of $1.19. The figure increased 23% from the year-ago quarter.

Revenues increased 4.6% year over year to $306 million and came slightly ahead of the Zacks Consensus Estimate of $305 million.

The Zacks Consensus Estimate for fourth quarter earnings has remained steady at $1.21 in the past 30 days. Further, the consensus mark for revenues is pegged at $308.4 million, up roughly 4.4% from the year-ago quarter.

Let’s see how things are shaping up for the upcoming announcement.

Factors Likely to Influence Q4 Results

VeriSign holds a significant position in the highly regulated .com and .net domain industry. The company is the exclusive registrar of the .com, .net and .name domains, per its agreements with The Internet Corporation for Assigned Names and Numbers (ICANN).

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. Price and EPS Surprise | VeriSign, Inc. Quote

Per “Amendment 35 to the Cooperative Agreement” between VeriSign and the U.S. Department of Commerce (DOC), signed on Oct 26, 2018, the company can now pursue with ICANN a price increase of up to 7% for .com domain names, in each of the last four years of six-year period of the Registry Agreement. Amendment 35 also extended the expiration of the Cooperative Agreement to Nov 30, 2024.

The amendment is beneficial for VeriSign. The company is expected to benefit from growing Internet consumption globally. For the fourth quarter, VeriSign projects domain name base registration to increase 0.9-1.4 million.

Notably, domain name registrations increased 2.6 million or 0.8% sequentially to 342.4 million across top-level domains (TLDs) in third-quarter 2018.

However, growth rate slowed down in the third quarter. Notably, in the second quarter, domain name registrations increased 6 million or 1.8% sequentially. This sluggishness is likely to hurt VeriSign’s top-line growth. Moreover, increase in marketing expenses is expected to keep margins under pressure in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

VeriSign has a Zacks Rank #3, but its Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post earnings beat this quarter:

Gogo (NASDAQ:GOGO) has an Earnings ESP of +9.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Square (NYSE:SQ) has an Earnings ESP of +6.06% and a Zacks Rank #2.

Vipshop Holdings (NYSE:VIPS) has an Earnings ESP of +5.26% and a Zacks Rank #2.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



Square, Inc. (SQ): Free Stock Analysis Report

VeriSign, Inc. (VRSN): Free Stock Analysis Report

Vipshop Holdings Limited (VIPS): Free Stock Analysis Report

Gogo Inc. (GOGO): Free Stock Analysis Report

Original post

Zacks Investment Research
VeriSign (VRSN) To Report Q4 Earnings: What's In The Cards?
 
VeriSign (VRSN) To Report Q4 Earnings: What's In The Cards?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email