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What to Expect When VeriSign (VRSN) Reports Q3 Earnings?
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VeriSign, Inc. (VRSN - Free Report) is set to report third-quarter 2016 results on Oct 27. Let's see how things are shaping up for this announcement.
Factors to Consider
VeriSign holds a prime position 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 top line. Also, we believe that gTLD prospects, international expansion through IDNs and investments in intellectual properties will boost results over the long run. Additionally, VeriSign has significant growth opportunities in the Distributed Denial of Service (DDoS) security market.
VeriSign also has significant growth opportunities in the network security products space. In Aug 2016, VeriSign secured a bid for the .web top-level domain (TLD) from Nu Dot Co LLC, which bodes well for its growth.
However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to marketing remain primary near-term headwinds.
Earnings Whispers
Our proven model does not conclusively show that VeriSign is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: VeriSign has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 79 cents.
Zacks Rank: VeriSign currently has a Zacks Rank #2. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
NN Inc. has an Earnings ESP of +4.35% and a Zacks Rank #2.
Entergy Corporation (ETR - Free Report) has an Earnings ESP of +8.07% and a Zacks Rank #2.
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What to Expect When VeriSign (VRSN) Reports Q3 Earnings?
VeriSign, Inc. (VRSN - Free Report) is set to report third-quarter 2016 results on Oct 27. Let's see how things are shaping up for this announcement.
Factors to Consider
VeriSign holds a prime position 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 top line. Also, we believe that gTLD prospects, international expansion through IDNs and investments in intellectual properties will boost results over the long run. Additionally, VeriSign has significant growth opportunities in the Distributed Denial of Service (DDoS) security market.
VeriSign also has significant growth opportunities in the network security products space. In Aug 2016, VeriSign secured a bid for the .web top-level domain (TLD) from Nu Dot Co LLC, which bodes well for its growth.
However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to marketing remain primary near-term headwinds.
Earnings Whispers
Our proven model does not conclusively show that VeriSign is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: VeriSign has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 79 cents.
Zacks Rank: VeriSign currently has a Zacks Rank #2. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
VERISIGN INC Price, Consensus and EPS Surprise
VERISIGN INC Price, Consensus and EPS Surprise | VERISIGN INC Quote
Stocks to Consider
Here are few stocks that, as per our model, have the right combination of the two key components:
Amazon.com Inc. (AMZN - Free Report) has an Earnings ESP of +10.47% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NN Inc. has an Earnings ESP of +4.35% and a Zacks Rank #2.
Entergy Corporation (ETR - Free Report) has an Earnings ESP of +8.07% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>