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What's in Store for VeriSign (VRSN) This Earnings Season?
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VeriSign, Inc. (VRSN - Free Report) is set to report second-quarter 2016 results on Jul 28. Let's see how things are shaping up for this announcement.
Factors to Consider
VeriSign is a name to reckon with in the highly regulated .com and .net domain industry. The renewal of the .com contract and price hikes for the .com and .net domain names will continue to drive VeriSign’s topline. In the last reported quarter, VeriSign processed 10 million new registrations and added 2.65 million net new names.
At first quarter end, the company had 142.5 million .com and .net domain names in the domain name base. As of Mar 31, 2016, there were some 326.4 million registered domain names globally across all TLDs (top level domains), as per Domain Name Industry Brief.
Additionally, VeriSign has significant growth opportunities in the network security products space. Plus, VeriSign and ICANN have finalized the proposed new root zone maintainer agreement and the extension of the .com Registry agreement and reportedly could submit it to the DoC for approval in August.
However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to marketing remain primary near-term headwinds.
Last quarter, increased registrar activity in China was one of the primary catalysts for higher net new additions. However, management has cautioned that “activity from registrars in China will normalize” through the second quarter.
For the second quarter, the domain name base is expected to grow in a range of 0.6 and 1.1 million names.
Here are a few stocks that, as per our model, have the right combination of the two key components, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to post an earnings beat this quarter:
Innoviva, Inc.(INVA - Free Report) with an Earnings ESP of +25.00% and a Zacks Rank #1.
GoDaddy Inc. (GDDY - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #3.
Expedia Inc. (EXPE - Free Report) with an Earnings ESP of +6.82% and a Zacks Rank #3.
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What's in Store for VeriSign (VRSN) This Earnings Season?
VeriSign, Inc. (VRSN - Free Report) is set to report second-quarter 2016 results on Jul 28. Let's see how things are shaping up for this announcement.
Factors to Consider
VeriSign is a name to reckon with in the highly regulated .com and .net domain industry. The renewal of the .com contract and price hikes for the .com and .net domain names will continue to drive VeriSign’s topline. In the last reported quarter, VeriSign processed 10 million new registrations and added 2.65 million net new names.
At first quarter end, the company had 142.5 million .com and .net domain names in the domain name base. As of Mar 31, 2016, there were some 326.4 million registered domain names globally across all TLDs (top level domains), as per Domain Name Industry Brief.
Additionally, VeriSign has significant growth opportunities in the network security products space. Plus, VeriSign and ICANN have finalized the proposed new root zone maintainer agreement and the extension of the .com Registry agreement and reportedly could submit it to the DoC for approval in August.
However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to marketing remain primary near-term headwinds.
Last quarter, increased registrar activity in China was one of the primary catalysts for higher net new additions. However, management has cautioned that “activity from registrars in China will normalize” through the second quarter.
For the second quarter, the domain name base is expected to grow in a range of 0.6 and 1.1 million names.
At present, VeriSign has a Zacks Rank #3 (Hold).
VERISIGN INC Price and EPS Surprise
VERISIGN INC Price and EPS Surprise | VERISIGN INC Quote
Stocks to Consider
Here are a few stocks that, as per our model, have the right combination of the two key components, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to post an earnings beat this quarter:
Innoviva, Inc.(INVA - Free Report) with an Earnings ESP of +25.00% and a Zacks Rank #1.
GoDaddy Inc. (GDDY - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #3.
Expedia Inc. (EXPE - Free Report) with an Earnings ESP of +6.82% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>