VeriSign (Nasdaq: VRSN ) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), VeriSign met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
VeriSign tallied revenue of $230.2 million. The 13 analysts polled by S&P Capital IQ wanted to see sales of $229.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $203.6 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 $0.59. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.51 per share. GAAP EPS of $0.65 for Q4 were 91% higher than the prior-year quarter's $0.34 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.7%, 230 basis points better than the prior-year quarter. Operating margin was 58.8%, 1,150 basis points better than the prior-year quarter. Net margin was 45.9%, 1,950 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $232.3 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $956.3 million. The average EPS estimate is $2.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 267 members out of 320 rating the stock outperform, and 53 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 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 hold, with an average price target of $39.64.
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