The 10-second takeaway
For the quarter ended March 31 (Q1), VeriSign met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins increased across the board.
VeriSign chalked up revenue of $205.7 million. The 14 analysts polled by S&P Capital IQ hoped for sales of $208.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $181.5 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 $0.42. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.42 for Q1 were 75% higher than the prior-year quarter's $0.24 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 79.9%, 240 basis points better than the prior-year quarter. Operating margin was 47.8%, 870 basis points better than the prior-year quarter. Net margin was 33.1%, 1,060 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $216.3 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $879.2 million. The average EPS estimate is $1.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 309 rating the stock outperform, and 52 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give VeriSign a green thumbs-up, and 11 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 $40.31.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.