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Factors to Note Ahead of VeriSign's (VRSN) Q2 Earnings Release

·4 min read

VeriSign, Inc. VRSN is set to report second-quarter 2022 results on Jul 28, after the closing bell.

The Zacks Consensus Estimate for second-quarter earnings is $1.52 per share, suggesting an increase of 16% from the year-ago quarter’s reported figure. The consensus mark for revenues is pegged at $348.8 million, indicating an increase of 5.9% from the year-ago quarter’s reported figure.

VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. Price and EPS Surprise
VeriSign, Inc. Price and EPS Surprise

VeriSign, Inc. price-eps-surprise | VeriSign, Inc. Quote

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of 3.3%, on average.

Factors to Note

VeriSign’s second-quarter earnings are expected to have benefited from continued healthy growth across .com and .net domain name registrations. The company is expected to have gained from growing Internet consumption globally.

VeriSign ended first-quarter 2022 with 174.7 million .com and .net domain name registrations, up 4% year over year. The company processed 10.2 million new domain name registrations for .com and .net compared with 11.6 million in the year-ago quarter.

Per VeriSign, domain name registrations increased 13.2 million or 3.9% year over year to 350.5 million across all top-level domains at the end of first-quarter 2022. Domain name registrations increased 8.8 million or 2.6% sequentially.

Demand for strong critical Internet infrastructure might have boosted the company’s performance in the to-be-reported quarter.

However, escalating operating expenses related to cybersecurity and infrastructure spending are likely to have put pressure on the company’s margins in the to-be-reported quarter. Also, ongoing uncertainty prevailing over the global macroeconomic conditions remains a concern.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for VeriSign this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

VeriSign has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

First Commonwealth Financial Corporation FCF has an Earnings ESP of +3.03% and currently sports a Zacks Rank #1. FCF is slated to release quarterly numbers on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FCF’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $98.2 million, respectively. FCF surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 7.1%. Shares of FCF have gained 5% in the past year.

Equinor EQNR has an Earnings ESP of +13.89% and currently sports a Zacks Rank #1. EQNR is slated to release quarterly numbers on Jul 27.

The Zacks Consensus Estimate for EQNR’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $50.5 billion, respectively. EQNR surpassed earnings estimates in all the preceding four quarters, delivering an average surprise of 5.8%. Shares of EQNR have gained 70.6% in the past year.

Suncor Energy SU has an Earnings ESP of +11.91% and currently flaunts a Zacks Rank #1. SU is slated to release quarterly numbers on Aug 4.

The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 44.6% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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VeriSign, Inc. (VRSN) : Free Stock Analysis Report
 
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