VeriSign Earnings: Strongth Double-Digit Growth Impresses Investors
VeriSign Inc. (NASDAQ:VRSN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.30%.
VeriSign Inc. Earnings Cheat Sheet
Results: Net income increased 78.41% to $96 million (59 cents per diluted share) in the quarter versus a net gain of $53.81 million in the year-earlier quarter.
Revenue: Rose 12.94% to $230 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: VeriSign Inc. reported adjusted net income of 59 cents per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $229.2 million.
Quoting Management: “In 2012, Verisign marked 15 years of uninterrupted availability for .com and .net and we renewed the .com Registry Agreement for an additional six years. Our performance continues to demonstrate discipline and operational focus…
…In 2013, we will continue to seek quality growth, while protecting and managing our business,” said Jim Bidzos, chairman and chief executive officer of Verisign.
Revenue increased 2.89% from $223.53 million in the previous quarter. Net income increased 23.22% from $77.91 million in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.53 to a profit $0.52. For the current year, the average estimate is a profit of $1.88, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials.)