VeriSign Meets on Revenues, Misses on EPS
VeriSign (NAS: VRSN) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), VeriSign met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share grew.
Gross margins contracted, operating margins improved, net margins expanded.
VeriSign recorded revenue of $203.6 million. The 13 analysts polled by S&P Capital IQ predicted a top line of $203.7 million. Sales were 15% higher than the prior-year quarter's $178.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.40. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.41 per share on the same basis. GAAP EPS were $0.36 for Q4 compared to -$0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 79.4%, 20 basis points worse than the prior-year quarter. Operating margin was 47.3%, 690 basis points better than the prior-year quarter. Net margin was 26.4%, 4,930 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $208.3 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $878.5 million. The average EPS estimate is $1.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 263 members out of 313 rating the stock outperform, and 50 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 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 $38.40.
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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 here. He is 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.
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