Earnings Preview: VeriSign

| About: VeriSign, Inc. (VRSN)

VeriSign (NASDAQ:VRSN) is expected to report Q2 earnings after the market close on Thursday, July 28, with a conference call scheduled for 4:30 pm ET.


The consensus estimate is 35c for EPS and $191.14M for revenue, according to First Call.

Analyst Views

ThinkEquity is projecting 35c in EPS and $191M in revenue, both in-line with consensus. While the company likely has several positive developments to detail, including the wind-down of the transition services agreement with Symantec (NASDAQ:SYMC), ThinkEquity is expecting management to ratchet down its near-term growth forecast for .com/.net combined registrations to perhaps 6%-8% or even a bit less, down from the current 7%-9%. ThinkEquity says July net additions to .com and .net continue to look weak. The firms 8% year-over-year growth forecast for 2H11 may prove too aggressive; however, ThinkEquity notes that a surge in name counts in the final week of the June quarter once again highlighted non-linear demand. ThinkEquity says that while the price hike slated for January 2012 could trigger some additional 2H12 demand ahead of the January 15, 2012 effective date, the firm believes that demand in the secondary, speculative market is shifting a bit and waiting for new TLDs to go live. ThinkEquity rates VeriSign a Buy with $42 price target. Consensus for Q3/FY11 is: 37c/$1.43 on $196.30M/$770.34M.

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