Why VeriSign Shares Got Hammered
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of VeriSign (NAS: VRSN) got hammered today, down by 20% at the low, after the company reported earnings, and a contract review delay.
So what: Revenue in the third quarter rose 13%, to $224 million, with non-GAAP net income of $84 million, or $0.50 per share. The figures were slightly ahead of the market's forecasts. The company trimmed the high-end of guidance, and now expects full-year sales between $870 million and $875 million.
Now what: The big news was that regulators have delayed the review of VeriSign's contract for its domain name registry business. The review was expected to be completed by the end of next month by the Commerce Department, but VeriSign said regulators may not finish on time. That adds major uncertainty in the near-term for what some analysts had considered a "formality."
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The article Why VeriSign Shares Got Hammered originally appeared on Fool.com.Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.