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What's in the Cards for VeriSign (VRSN) in Q1 Earnings?

VeriSign, Inc. VRSN is set to report first-quarter 2016 results on Apr 28. Let's see how things are shaping up for this announcement.

Factors to Consider

The renewal of the .com contract and price hikes for the .com and .net domain names drive VeriSign’s topline. In addition, an expected increase in domain name base will remain a key driver of its growth.

Also, we believe that gTLD prospects, international expansion through IDNs and investments in intellectual properties will boost results over the long run. Additionally, VeriSign has significant growth opportunities in its network security products. We are optimistic about VeriSign’s Network Security services business. VeriSign’s partnership with Juniper Networks, Inc. JNPR will boost its growth in the fast growing Distributed Denial of Service (DDoS) security market.

However, the negative impact of search engine adjustments on domain monetization and increasing operating expenses related to marketing remain primary near-term headwinds. Intensifying competition is an added concern.

At present, VeriSign has a Zacks Rank #2 (Buy).

Stocks to Consider

Here's a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter:

Silicon Motion Technology Corp SIMO, with an Earnings ESP of +7.27% and a Zacks Rank #1 (Strong Buy).

Equifax Inc. EFX with an Earnings ESP of +1.74% and a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
VERISIGN INC (VRSN): Free Stock Analysis Report
 
EQUIFAX INC (EFX): Free Stock Analysis Report
 
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
 
SILICON MOTION (SIMO): Free Stock Analysis Report
 
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