S&P 500 (NYSE:SPY) component VeriSign Inc. (NASDAQ:VRSN) reported net income above Wall Street’s expectations for the first quarter. VeriSign provides Internet infrastructure services for the networked world.
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VeriSign Earnings Cheat Sheet for the First Quarter
Results: Net income for VeriSign Inc. rose to $68 million (42 cents per share) vs. $40.8 million (24 cents per share) in the same quarter a year earlier. This marks a rise of 66.8% from the year-earlier quarter.
Revenue: Rose 13.3% to $205.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: VeriSign Inc. beat the mean analyst estimate of 39 cents per share. Analysts were expecting revenue of $208.6 million.
Quoting Management: “The first quarter was another record in terms of new domain name registrations, reflecting the global growth in internet adoption and e-commerce,” commented Jim Bidzos, executive chairman, president and chief executive officer. “We believe that the security and stability Verisign has provided spanning two decades, and continues to provide, is an important factor in that growth.”
Revenue has increased for four quarters in a row. Revenue increased 15.2% to $203.6 million in the fourth quarter of the last fiscal year. The figure rose 14.1% in the third quarter of the last fiscal year from the year earlier and climbed 12.5% in the second quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 35 cents versus a mean estimate of net income of 38 cents per share.
Margins increased in the fourth quarter of the last fiscal year after dropping the quarter before. Gross margins grew to 79.9%, up 2.5 percentage points from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.2 percentage point to 79.4% from the year earlier quarter.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 42 cents per share, a drop from 45 cents. Over the past sixty days, the average estimate for the fiscal year has reached $1.72 abs per share, a decline from $1.76.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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