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VeriSign (VRSN) to Report Q2 Earnings: What's in Store?

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VeriSign (VRSN - Free Report) is set to report second-quarter 2019 results on Jul 25.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 10.8%.

VeriSign reported first-quarter 2019 non-GAAP earnings of $1.31 per share that beat the Zacks Consensus Estimate of $1.24. The figure increased 22.4% from the year-ago quarter.

Moreover, revenues increased 2.4% year over year to $306.4 million and beat the consensus mark of $302.4 million.

The Zacks Consensus Estimate for second-quarter earnings has been steady at $1.29 over the past 30 days. The consensus mark for revenues is pegged at $306.5 million, indicating an increase of 1.4% from the year-ago quarter’s reported figure.

The consistent increase in the number of .com and .net domain name registrations is likely to drive VeriSign’s top line in the to-be-reported quarter.

Management anticipates the renewal rate for first-quarter 2019 to be about 75% compared with 75.3% in the year-ago quarter. Renewal rates are not fully measurable until 45 days from the end of the quarter.
 

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. Price and EPS Surprise

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

 

Moreover, on May 30, 2019, VeriSign announced that first-quarter 2019 closed with 351.8 million domain name registrations across all top-level domains (TLDs), up 0.9% year over year. Domain name registrations grew 18 million or 5.4% year over year.

However, increasing operating expenses related to research and development, and sales and marketing may prove to be a drag on margins in second-quarter 2019.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

VeriSign has a Zacks Rank #3 and an Earnings ESP of 0.00%. 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:

Facebook (FB - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.    

Apple (AAPL - Free Report) has an Earnings ESP of +1.35% and a Zacks Rank #3.

Grubhub (GRUB - Free Report) has a Zacks Rank #3 and an Earnings ESP of +23.79%.

 

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Facebook, Inc. (FB) - free report >>

VeriSign, Inc. (VRSN) - free report >>

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Apple Inc. (AAPL) - free report >>