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What Does Wall Street See for VeriSign's Q1?

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Checking expectations

VeriSign (Nasdaq: VRSN) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict VeriSign's revenues will increase 13.1% and EPS will increase 28.6%.

The average estimate for revenue is $232.6 million. On the bottom line, the average EPS estimate is $0.54.

Revenue details
Last quarter, VeriSign tallied revenue of $230.2 million. 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 details
Last quarter, non-GAAP EPS came in at $0.59. GAAP EPS of $0.66 for Q4 were 94% higher than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 81.7%, 230 basis points better than the prior-year quarter. Operating margin was 58.8%, much better than the prior-year quarter. Net margin was 45.9%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $954.0 million. The average EPS estimate is $2.27.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 268 members out of 320 rating the stock outperform, and 52 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give VeriSign a green thumbs-up, and eight 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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