The 10-second takeaway
For the quarter ended June 30 (Q2), VeriSign met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Margins expanded across the board.
VeriSign booked revenue of $214.1 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $215.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $189.8 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 $0.45. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS were $0.42 for Q2 compared to -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.0%, 140 basis points better than the prior-year quarter. Operating margin was 49.9%, 470 basis points better than the prior-year quarter. Net margin was 32.0%, 3,760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $224.3 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $878.5 million. The average EPS estimate is $1.85.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 312 rating the stock outperform, and 55 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 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 $42.77.
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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 here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.