VeriSign Increases Sales but Misses Estimates on Earnings
VeriSign (NAS: VRSN) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), VeriSign met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins increased across the board.
VeriSign chalked up revenue of $205.7 million. The 14 analysts polled by S&P Capital IQ hoped for sales of $208.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $181.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.42 for Q1 were 75% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 79.9%, 240 basis points better than the prior-year quarter. Operating margin was 47.8%, 870 basis points better than the prior-year quarter. Net margin was 33.1%, 1,060 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $216.3 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $879.2 million. The average EPS estimate is $1.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 309 rating the stock outperform, and 52 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give VeriSign a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriSign is outperform, with an average price target of $40.31.
New technology paradigms and mobile devices are driving the next wave of Internet services. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does VeriSign fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear.." Get instant access to this free report.
- Add VeriSign to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.