The 10-second takeaway
For the quarter ended Sep. 30 (Q3), VeriSign met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
VeriSign logged revenue of $223.5 million. The 15 analysts polled by S&P Capital IQ expected revenue of $223.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $197.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.47 for Q3 were 31% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.5%, 270 basis points better than the prior-year quarter. Operating margin was 51.9%, 520 basis points better than the prior-year quarter. Net margin was 34.9%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $231.4 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $874.8 million. The average EPS estimate is $1.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 255 members out of 312 rating the stock outperform, and 57 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give VeriSign a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriSign is outperform, with an average price target of $47.25.
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