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The company is benefiting from growth in .com and .net domain name registrations. The company’s 2022 and 2023 revenues are anticipated to rise 7.3% and 7.7%, respectively. Earnings for the same periods are expected to increase by 10% and 11.4%, respectively.
VRSN outpaced estimates in all of the trailing four quarters, delivering an earnings surprise of 3.8%, on average.
In the last reported quarter, VeriSign delivered adjusted earnings of $1.54 per share, beating the Zacks Consensus Estimate by 1.3% and increasing 17.5% year over year. Revenues rose 6.8% year over year to $351.9 million and beat the Zacks Consensus Estimate by 0.9%.
For the third quarter, the Zacks Consensus Estimate for revenues and earnings is pegged at $357 million and $1.57 per share, indicating year-over-year growth of 6.8% and 12.1%, respectively.
The stock is down 25.9% from its 52-week high level of $257.03 on Dec 30, 2021, making it relatively affordable for investors. VRSN has declined 13.9% in the past year against a 35.6% plunge of the Zacks sub-industry.
Image Source: Zacks Investment Research
Factors Driving Growth
Based in Reston, VA, VeriSign provides Internet infrastructure services, including domain name registration and infrastructure assurance services. Its only reportable segment includes Registry Services.
VeriSign’s performance is gaining from growth in .com and .net domain name registrations. The company ended second-quarter 2022 with 174.3 million .com and .net domain name registrations, up 2.2% year over year. The company will hike the annual registry-level wholesale fee for each new and renewal .net domain name registration to $9.92 from $9.02 from Feb 1, 2023. The company is expected to benefit from growing Internet consumption globally.
However, surging expenses and weak global macroeconomic conditions might put pressure on profitability. Stiff competition from the likes of Google’s free public domain name service and a high debt burden are concerns for this stock.
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Keysight Technologies (KEYS - Free Report) and Arista Networks (ANET - Free Report) . Arista sports a Zacks Rank #1 (Strong Buy) while Cadence and Keysight carry a Zacks Rank #2.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have moved up 6.1% in the past year.
The Zacks Consensus Estimate for Keysight’s fiscal 2022 earnings is pegged at $7.47 per share, up 4.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 11%.
Keysight’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, the average being 9.3%. Shares of KEYS have lost 3.3% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 38.9% in the past year.
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Here's Why Investors Need to Keep an Eye on VeriSign (VRSN)
VeriSign (VRSN - Free Report) is one stock investors may want to keep an eye on in the current volatile market conditions, given its upside potential. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is benefiting from growth in .com and .net domain name registrations. The company’s 2022 and 2023 revenues are anticipated to rise 7.3% and 7.7%, respectively. Earnings for the same periods are expected to increase by 10% and 11.4%, respectively.
VRSN outpaced estimates in all of the trailing four quarters, delivering an earnings surprise of 3.8%, on average.
In the last reported quarter, VeriSign delivered adjusted earnings of $1.54 per share, beating the Zacks Consensus Estimate by 1.3% and increasing 17.5% year over year. Revenues rose 6.8% year over year to $351.9 million and beat the Zacks Consensus Estimate by 0.9%.
For the third quarter, the Zacks Consensus Estimate for revenues and earnings is pegged at $357 million and $1.57 per share, indicating year-over-year growth of 6.8% and 12.1%, respectively.
The stock is down 25.9% from its 52-week high level of $257.03 on Dec 30, 2021, making it relatively affordable for investors. VRSN has declined 13.9% in the past year against a 35.6% plunge of the Zacks sub-industry.
Image Source: Zacks Investment Research
Factors Driving Growth
Based in Reston, VA, VeriSign provides Internet infrastructure services, including domain name registration and infrastructure assurance services. Its only reportable segment includes Registry Services.
VeriSign’s performance is gaining from growth in .com and .net domain name registrations. The company ended second-quarter 2022 with 174.3 million .com and .net domain name registrations, up 2.2% year over year. The company will hike the annual registry-level wholesale fee for each new and renewal .net domain name registration to $9.92 from $9.02 from Feb 1, 2023. The company is expected to benefit from growing Internet consumption globally.
However, surging expenses and weak global macroeconomic conditions might put pressure on profitability. Stiff competition from the likes of Google’s free public domain name service and a high debt burden are concerns for this stock.
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Keysight Technologies (KEYS - Free Report) and Arista Networks (ANET - Free Report) . Arista sports a Zacks Rank #1 (Strong Buy) while Cadence and Keysight carry a Zacks Rank #2.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have moved up 6.1% in the past year.
The Zacks Consensus Estimate for Keysight’s fiscal 2022 earnings is pegged at $7.47 per share, up 4.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 11%.
Keysight’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, the average being 9.3%. Shares of KEYS have lost 3.3% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 38.9% in the past year.