VeriSign (Nasdaq: VRSN ) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), VeriSign beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Margins increased across the board.
VeriSign booked revenue of $236.4 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $232.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $205.7 million.
EPS came in at $0.58. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. Non-GAAP EPS of $0.58 for Q1 were 38% higher than the prior-year quarter's $0.42 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.52 for Q1 were 24% higher than the prior-year quarter's $0.42 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
For the quarter, gross margin was 80.0%, 10 basis points better than the prior-year quarter. Operating margin was 56.4%, 860 basis points better than the prior-year quarter. Net margin was 35.7%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $237.0 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $954.5 million. The average EPS estimate is $2.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 269 members out of 321 rating the stock outperform, and 52 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give VeriSign a green thumbs-up, and seven 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 $42.95.
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