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.
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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