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Factors to Note Ahead of VeriSign's (VRSN) Q4 Earnings Release

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VeriSign, Inc. (VRSN - Free Report) is set to report fourth-quarter 2023 results on Feb 8, after the closing bell.

The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at $1.83 per share and $381 million, suggesting increases of 7.7% and 3.2%, respectively, from the year-ago quarter’s reported figures.

The company’s earnings beat the consensus estimate in all the last four quarters, the average beat being 6.3%.

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. price-eps-surprise | VeriSign, Inc. Quote

Factors to Note

VeriSign’s fourth-quarter earnings are expected to have benefited from continued healthy growth across .com and .net domain name registrations. It is expected to have gained from growing Internet consumption globally. The company’s efforts to expand its critical infrastructure to tap the growing demand for DNS navigation services in industries like commerce, education and healthcare bode well.

VRSN ended third-quarter 2023 with 173.9 million .com and .net domain name registrations. In the last reported quarter, the company processed 9.9 million new domain name registrations for .com and .net, which remained the same year over year.

Also, escalating operating expenses related to cybersecurity and infrastructure spending are likely to have weighed on the company’s fourth-quarter operating margin on a year-over-year basis.

What Does the Zacks Model Say

Our proven model does not conclusively predict an earnings beat for VeriSign this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

VRSN 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 that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Watts Water Technologies (WTS - Free Report) has an Earnings ESP of +0.87% and currently carries a Zacks Rank of 2. WTS is set to announce quarterly figures on Feb 12. You can see the complete list of today's Zacks #1 Rank stocks here.  

The Zacks Consensus Estimate for WTS’ to-be-reported quarter’s earnings and revenues is pegged at $1.78 per share and $532.4 million, respectively. Shares of WTS have gained 20.1% in the past year.

InterDigital, Inc (IDCC - Free Report) has an Earnings ESP of +1.93% and presently carries a Zacks Rank #2. IDCC is slated to release quarterly numbers on Feb 15.

The Zacks Consensus Estimate for IDCC’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $104.3 million, respectively. Shares of IDCC have rallied 49.9% in the past year.

Shopify Inc (SHOP - Free Report) has an Earnings ESP of +1.02% and currently sports a Zacks Rank #1. SHOP is scheduled to report quarterly earnings on Feb 13.

The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $2.07 billion, respectively. Shares of SHOP have plunged 60.9% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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