VeriSign Inc. Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component VeriSign, Inc. (NASDAQ:VRSN) will unveil its latest earnings on Thursday, October 27, 2011. VeriSign provides Internet infrastructure services for the networked world.

VeriSign, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 33 cents per share, a rise of 43.5% 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 was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 47.7% versus last year to $1.27.

Last quarter, the company came in at net income of 32 cents per share against a mean estimate of profit of 30 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by one cent.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Wall St. Revenue Expectations: On average, analysts predict $196.2 million in revenue this quarter, a rise of 13.6% from the year ago quarter. Analysts are forecasting total revenue of $769 million for the year, a rise of 13% from last year’s revenue of $680.6 million.

Analyst Ratings: eight out of 14 analysts surveyed (57.1%) have a buy rating on VeriSign.. This is below the mean analyst rating of 10 competitors, which average 60.6% buy ratings.

A Look Back: In the second quarter, the company swung to a loss of $10.6 million (6 cents a share) from a profit of $35.2 million (19 cents) a year earlier, but beat analyst expectations. Revenue rose 12.5% to $189.8 million from $168.7 million.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 31.3% in the first quarter, 32.3% in the fourth quarter of the last fiscal year and 33.1% in the third quarter of the last fiscal year.

Competitors to Watch: Symantec Corporation (NASDAQ:SYMC), Tucows Inc. (AMEX:TCX), Innodata Isogen, Inc. (NASDAQ:INOD), Microsoft Corporation (NASDAQ:MSFT), InterNAP Network Services (NASDAQ:INAP), Web.com Group, Inc. (NASDAQ:WWWW), Yahoo! Inc. (NASDAQ:YHOO), Neustar, Inc (NYSE:NSR), SAVVIS, Inc. (NASDAQ:SVVS), and Wave Systems Corp. (NASDAQ:WAVX).

Stock Price Performance: During September 23, 2011 to October 21, 2011, the stock price had risen $2.54 (9%) from $28.34 to $30.88. The stock price saw one of its best stretches over the last year between November 15, 2010 and November 22, 2010 when shares rose for six-straight days, rising 4% (+$1.26) over that span. It saw one of its worst periods between June 2, 2011 and June 13, 2011 when shares fell for eight-straight days, falling 5.1% (-$1.78) over that span. Shares are up 69 cents (+2.3%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

 

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