VeriSign Is Misunderstood And Could Triple Over The Next 5 Years
Early Retiree • 25 Comments
Early Retiree • 25 Comments
Thu, Apr. 28, 4:07 PM
Wed, Apr. 27, 5:35 PM
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Fri, Feb. 12, 5:25 PM
- VeriSign (VRSN +3.8%) closed near $77 after beating Q4 estimates and reporting it added 4.6M net new domain names - up from Q3's 1.68M and Q4 2014's 0.59M, and bringing the total base to 139.8M (+6.3% Y/Y).
- The company also disclosed it has upped its buyback authorization by $611M, raising its available funds to $1B; that's good for repurchasing over 11% of shares at current levels. $150M was spent on buybacks in Q4, and $622M over the whole of 2015.
- A slightly soft 2016 outlook is being brushed off: On the earnings call (transcript), VeriSign guided for 2016 revenue of $1.11B-$1.135B (+5-7% Y/Y) vs. a $1.14B consensus. Op. margin is expected to rise to 62.5%-63.5% from 2015's 61.5%, and the capex budget has been set at $40M-$50M.
- 12.2M new domain names were processed vs. 9.2M in Q3 and 8.2M a year ago. CEO James Bidzos attributed the Q4 domain name strength to Chinese/Asia-Pac demand - Chinese domain name investment/speculation has surged in recent months. Bidzos: "While we believe China and the Asia-Pacific region will continue to perform well, we expect these markets to return to more normal levels in 2016."
- Non-GAAP operating expenses fell by $1M Y/Y to $103M. For the whole of 2015, free cash flow rose 11% to $629M (well above net income of $405M). VeriSign ended 2015 with $1.9B in cash ($753M in the U.S.) and over $1.2B in debt.
- VeriSign's Q4 results, earnings release
Thu, Feb. 11, 4:07 PM
Wed, Feb. 10, 5:35 PM
Tue, Jan. 5, 1:37 PM
- After initially seeing just modest losses, VeriSign (NASDAQ:VRSN) has sold off in the wake of a downgrade to Sell from Citi.
- The downgrade follows a 2015 in which the domain name and Web security service provider's shares rose 53% amid healthy domain registration activity. VeriSign currently trades for 23x a 2016 EPS consensus of $3.46.
- Q4 results arrive on Feb. 11.
Dec. 15, 2015, 6:24 AM| Dec. 15, 2015, 6:24 AM
- November monthly performance was: 0%
- No dividends were paid in November
- Top 10 Holdings as of 11/30/2015: VeriSign Inc (VRSN): 0.41%, TFS Financial Corp (TFSL): 0.4%, TECO Energy Inc (TE): 0.37%, Vantiv Inc (VNTV): 0.34%, Nasdaq Inc (NDAQ): 0.34%, Lockheed Martin Corp (LMT): 0.34%, Southwest Airlines Co (LUV): 0.34%, Alphabet Inc Class A (GOOGL): 0.33%, Republic Services Inc Class A (RSG): 0.33%, Cameron International Corp (CAM): 0.33%
Oct. 22, 2015, 4:16 PM
- VeriSign (NASDAQ:VRSN): Q3 EPS of $0.78 beats by $0.01.
- Revenue of $265.78M (+4.2% Y/Y) beats by $0.36M.
Oct. 21, 2015, 5:35 PM
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Jul. 24, 2015, 7:09 PM
- Verisign (NASDAQ:VRSN) rallied today after slightly beating Q2 revenue estimates (and slightly missing on EPS). Shares made a fresh high of $70.99 before paring their gains amid a market selloff.
- On its earnings call (transcript), the domain name/Web security service provider guided for 2015 revenue of $1.045B-$1.055B (+3.5%-4.5% Y/Y), in-line with a $1.05B consensus. Full-year gross margin is still expected to be at least 80%.
- Key metrics: 520K net new domain names were added in Q2, leading the total base to rise to 133.5M. 8.7M new .com and .net registrations were processed, flat Q/Q and up 200K Y/Y. The .com/.net renewal rate was 73.4%, up from 72.5% in Q1 and 72.6% a year ago, and the deferred revenue balance rose by $7M Q/Q to $932M.
- Financials: GAAP costs/expenses rose 6% Y/Y to $113.6M (compares with 5% rev. growth). $156M was spent to buy back 2.5M shares. Verisign ended Q2 with $1.9B in cash/investments, and a similar amount of debt.
- Q2 results, PR
Jul. 23, 2015, 4:17 PM
- VeriSign (NASDAQ:VRSN): Q2 EPS of $0.74 misses by $0.01.
- Revenue of $262.54M (+4.9% Y/Y) beats by $0.65M.
Apr. 24, 2015, 5:37 PM
Apr. 24, 2015, 12:00 PM
- With shares having gone into earnings just $0.52 away from a high of $68.25 (reached on Thursday), Verisign's (NASDAQ:VRSN) slight Q1 miss isn't going over well. On its CC (transcript), the domain name/authentication services firm narrowed its 2015 revenue guidance to $1.043B-$1.057B from $1.04B-$1.06B. Op. margin guidance of 60%-62%, gross margin guidance of "at least 80%," and domain name growth of 2%-3.5% was reiterated.
- Verisign has also announced the hiring of Todd Strubbe, formerly an exec at CRM outsourcing firm West Corporation, to be its COO.
- 1.5M net new domain names were added in Q1, +3.1% Y/Y and bringing the total .com/.net base to 133M. 8.7M new .com/.net domain name registrations were processed vs. 8.6M a year ago; the renewal rate rose 30 bps to 72.5%.
- The deferred revenue balance rose $35M Q/Q to $925M. $160M was spent to buy back 2.7M shares.
- Q1 results, PR
Apr. 23, 2015, 4:13 PM
- VeriSign (NASDAQ:VRSN): Q1 EPS of $0.74 misses by $0.01.
- Revenue of $258.42M (+3.9% Y/Y) misses by $0.58M.
Apr. 15, 2015, 12:40 PM
- Scott Crenshaw, until now domain name/authentication service provider VeriSign's (VRSN +0.1%) SVP of products (responsible for developing new products/services), has been hired by Rackspace (RAX +0.1%) to be its SVP of strategy and product.
- In his new job, Crenshaw will oversee Rackspace's "corporate strategy, business development and product and engineering portfolio." He'll report to CEO Taylor Rhodes, who landed the top job only 7 months ago.
- VeriSign's Q1 report arrives on April 23. Rackspace hasn't set an earnings date yet.
Mar. 24, 2015, 3:54 PM
- Buyback-happy U.S. firms are prohibited from repurchasing shares from about five weeks prior to releasing quarterly earnings to about 48 hours after those reports. These blackout periods, says Goldman, may offer an especially tasty time for investors to pick up shares of their favorites.
- "High valuations in the absence of corporate demand may weigh on stock prices," says Goldman's Amanda Sneider, and particular areas of focus are tech, consumer discretionary, and financials - they've accounted for more than 50% of buyback activity.
- Goldman's buyback blackout theme buys: SanDisk (NASDAQ:SNDK), Yahoo (NASDAQ:YHOO), Travelers (NYSE:TRV), Apple (NASDAQ:AAPL), Juniper Networks (NYSE:JNPR), Xerox (NYSE:XRX), Torchmark (NYSE:TMK), F5 Networks (NASDAQ:FFIV), Citrix Systems (NASDAQ:CTXS), Aon (NYSE:AON), Moody's (NYSE:MCO), VeriSign (NASDAQ:VRSN), Hartford Financial (NYSE:HIG), Ameriprise (NYSE:AMP), Corning (NYSE:GLW), Time Warner (NYSE:TWX), Seagate Technology (NASDAQ:STX), Viacom (NASDAQ:VIAB), Legg Mason (NYSE:LM), XL Group (NYSE:XL), DirecTV (NASDAQ:DTV), Allstate (NYSE:ALL), Nvidia (NASDAQ:NVDA), CBS (NYSE:CBS), Macy's (NYSE:M), Kohl's (NYSE:KSS).
VeriSign, Inc. engages in the provision of domain name registry services and internet security. It operates in a single reportable segment: Registry Services and Network Intelligence and Availability Services. Its registry services ensures security, stability, and resiliency of key internet... More
Industry: Application Software
Country: United States
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