VeriSign Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 44 cents per share, a rise of 18.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting net income of $1.72 per share, a rise of 35.4% from last year.
Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 43 cents per share against a mean estimate of net income of 42 cents, and the quarter before, the company exceeded forecasts by 2 cents with profit of 41 cents versus a mean estimate of net income of 39 cents.
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A Look Back: In the second quarter, the company swung to a profit of $68.5 million (42 cents a share) from a loss of $10.6 million (6 cents) a year earlier, beating analyst estimates. Revenue rose 12.8% to $214.1 million from $189.8 million.
Wall St. Revenue Expectations: Analysts predict a rise of 13.5% in revenue from the year-earlier quarter to $223.6 million.
Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $4.74 (11.1%), from $42.63 to $47.37. 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. It saw one of its worst periods between July 5, 2012 and July 12, 2012 when shares fell for six straight days, dropping 5.5% (-$2.46) over that span.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 13.9% over the last four quarters.
Analyst Ratings: With five analysts rating the stock as a buy, one rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.28 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.29 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.7% to $672.6 million while assets rose 3.9% to $1.53 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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