VeriSign Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component VeriSign (NASDAQ:VRSN) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. VeriSign provides Internet infrastructure services for the networked world.

VeriSign Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a rise of 37.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 47 cents during the last month. Analysts are projecting profit to rise by 36.2% versus last year to $1.73.

Past Earnings Performance: Last quarter, the company reported profit of 46 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

A Look Back: In the third quarter, profit rose 32.2% to $77.9 million (47 cents a share) from $58.9 million (36 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.5% to $223.5 million from $197 million.

Here’s how VeriSign traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Stock Price Performance: Between October 22, 2012 and January 17, 2013, the stock price fell $7.90 (-16.7%), from $47.31 to $39.41. It saw one of its worst periods between November 12, 2012 and November 20, 2012 when shares fell for seven straight days, dropping 5.8% (-$2.51) over that span. The stock price saw one of its best stretches over the last year between October 9, 2012 and October 17, 2012, when shares rose for seven straight days, increasing 2.9% (+$1.39) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 13.7% over the last four quarters.

Wall St. Revenue Expectations: Analysts are projecting a rise of 12.6% in revenue from the year-earlier quarter to $229.3 million.

Analyst Ratings: There are mostly holds on the stock with eight of 12 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)