Thanks to the unfavorable amending of its .com domain renewal contract, Wells Fargo now sees VeriSign (VRSN -13.8%) growing at a 7% annual clip, down from a prior 11% - .com registrations make up ~85% of VeriSign's revenue. Also, Wells, which is reiterating an Outperform, thinks comments from management about re-evaluating VeriSign's capital structure suggests the company plans to take on more debt and increase its buyback activity.
More on VeriSign: The company announces the Department of Commerce has approved a 6-year renewal of its deal to operate the .com domain name registry. VeriSign's current fee of $7.85/registration will continue, but it won't be able to implement four 7% price hikes over the course of the renewal deal, as it had planned. Instead, price hikes will be tied to a new "consensus policy" or "extraordinary expenses," and will require the DoC's approval. VRSN -14.8%. CC at 8:30AM ET (webcast).
Shares of VeriSign (VRSN) are halted with news pending. A conference call to provide a status update on the .com Registry Agreement Renewal is minutes away, according to the company's investor relations website section. (webcast)
VeriSign (VRSN -2.5%) is slumping after receiving a downgrade to Equal Weight from boutique i-bank First Analysis. Shares have been pressured this fall by concerns about regulatory reviews of VeriSign's 6-year renewal contract for handling the Dot.com domain name registry.
Verisign (VRSN +10.4%) soars after providing details about an '06 amendment to a Cooperative Agreement it signed with the Commerce Department. The amendment states Verisign won't renew its deal to run the .com domain name registry without the department's approval, but also states there's an "expectancy of renewal." Verisign adds it believes the DOJ has "substantially concluded its own review process" - shares had sold off on worries about the DOJ/DOC reviews. (PR)
Verisign (VRSN -7.1%) slides as worries mount about the Commerce and Justice departments' reviews of Verisign's offer for a 6-year renewal of its deal to run the registry for .com domain names. The company noted in last week's Q3 report that the Commerce department might not complete its review before the Nov. 30 expiration of Verisign's current deal, in which case a 6-month extension kicks in. Verisign's offer gives it the right to raise prices by 7% four times over the course of the deal. (2012 guidance)
VeriSign (VRSN -19.1%) opens sharply lower after missing Q3 EPS estimates and guiding on its earnings call for 2012 revenue of $870M-$875M, mostly below an $874.8M consensus. The company mentioned Q3 domain name registry additions fell short of guidance due to search algorithm changes (presumably Google's) changing the "economics" of certain domain names, along with macro headwinds (particularly in Europe).
VeriSign (VRSN -2.2%) after Baird downgrades to Neutral on valuation grounds. The provider of domain name registration and authentication services has had a strong 2012 run-up, and currently goes for 24x estimated 2012 EPS.
VeriSign Inc is a provider of internet infrastructure services for the networked world. It provides network confidence & availability for mission-critical Internet services, such as domain name registry services & infrastructure assurance services.