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VeriSign (VRSN) to Reports Q2 Earnings: What's in the Cards?
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VeriSign (VRSN - Free Report) is set to report second-quarter 2021 results on Jul 22.
The Zacks Consensus Estimate for second-quarter earnings has remained steady at $1.31 per share over the past 30 days, implying a decline of 0.8% from the figure reported in the year-ago period.
The consensus mark for revenues is pegged at $326.9 million, indicating an increase of 4% from the year-ago quarter’s reported figure.
VeriSign’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 8.7%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
VeriSign’s second-quarter results are expected to have benefited from a recovering global economy that has driven Internet usage. Growth in .com and .net domain name registrations is likely to have benefited the company’s performance in the to-be-reported quarter.
VerisSign ended first-quarter 2021 with 168 million .com and .net domain name registrations, up 4.6% year over year. The company processed 11.6 million new domain name registrations for .com and .net compared with 10 million in the year-ago quarter. Markedly, renewal rates are not fully measurable until 45 days after the end of the quarter.
Per VeriSign’s latest The Domain Name Industry Brief report, domain name registrations decreased 2.8 million or 0.8% sequentially to 363.5 million across all top-level domains at the end of first-quarter 2021. Domain name registrations decreased 3.3 million or 0.9% year over year.
However, increasing operating expenses related to cybersecurity as well as infrastructure spending are likely to have weighed on the company’s second-quarter operating margin on a year-over-year basis.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Verisign has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
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VeriSign (VRSN) to Reports Q2 Earnings: What's in the Cards?
VeriSign (VRSN - Free Report) is set to report second-quarter 2021 results on Jul 22.
The Zacks Consensus Estimate for second-quarter earnings has remained steady at $1.31 per share over the past 30 days, implying a decline of 0.8% from the figure reported in the year-ago period.
The consensus mark for revenues is pegged at $326.9 million, indicating an increase of 4% from the year-ago quarter’s reported figure.
VeriSign’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 8.7%, on average.
VeriSign, Inc. Price and EPS Surprise
VeriSign, Inc. price-eps-surprise | VeriSign, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
VeriSign’s second-quarter results are expected to have benefited from a recovering global economy that has driven Internet usage. Growth in .com and .net domain name registrations is likely to have benefited the company’s performance in the to-be-reported quarter.
VerisSign ended first-quarter 2021 with 168 million .com and .net domain name registrations, up 4.6% year over year. The company processed 11.6 million new domain name registrations for .com and .net compared with 10 million in the year-ago quarter. Markedly, renewal rates are not fully measurable until 45 days after the end of the quarter.
Per VeriSign’s latest The Domain Name Industry Brief report, domain name registrations decreased 2.8 million or 0.8% sequentially to 363.5 million across all top-level domains at the end of first-quarter 2021. Domain name registrations decreased 3.3 million or 0.9% year over year.
However, increasing operating expenses related to cybersecurity as well as infrastructure spending are likely to have weighed on the company’s second-quarter operating margin on a year-over-year basis.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Verisign has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
Apple (AAPL - Free Report) has an Earnings ESP of +3.40% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol (APH - Free Report) has an Earnings ESP of +1.29% and carries a Zacks Rank of 2 at present.
Carrier Global (CARR - Free Report) has an Earnings ESP of +6.44% and a Zacks Rank #2.