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VeriSign (VRSN) to Reports Q3 Earnings: What's in the Cards?

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VeriSign VRSN is set to report third-quarter 2021 results on Oct 28.

The Zacks Consensus Estimate for third-quarter earnings has remained steady at $1.35 per share over the past 30 days, implying a decline of 9.4% from the figure reported in the year-ago period.

The consensus mark for revenues is pegged at $332 million, indicating an increase of 4.5% from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in one, delivering an earnings surprise of 6.9%, on average.

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

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note

VeriSign’s third-quarter results are expected to have benefited from a recovering global economy that has driven Internet usage. Growth in .com and .net domain name registrations is likely to have benefited the company’s performance in the to-be-reported quarter.

VerisSign ended second-quarter 2021 with 170.6 million .com and .net domain name registrations, up 5.2% year over year. The company processed 11.7 million new domain name registrations for .com and .net compared with 11.1 million in the year-ago quarter.

Per VeriSign’s latest The Domain Name Industry Brief report, domain name registrations decreased 2.8 million or 0.7% year over year to 367.3 million across all top-level domains at the end of first-quarter 2021. Domain name registrations increased 3.8 million or 1% sequentially.

However, increasing operating expenses related to cybersecurity, as well as infrastructure spending, are likely to have weighed on the company’s third-quarter operating margin on a year-over-year basis.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and 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 #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:

Apple AAPL has an Earnings ESP of +5.69% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials AMAT has an Earnings ESP of +0.52% and carries a Zacks Rank of 2, at present.

CACI International CACI has an Earnings ESP of +4.43% and a Zacks Rank #2.


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

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CACI International, Inc. (CACI) : Free Stock Analysis Report

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