Here's What Analysts Are Forecasting For VeriSign, Inc. (NASDAQ:VRSN) After Its First-Quarter Results

Shareholders might have noticed that VeriSign, Inc. (NASDAQ:VRSN) filed its quarterly result this time last week. The early response was not positive, with shares down 4.7% to US$175 in the past week. VeriSign reported US$384m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.92 beat expectations, being 3.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for VeriSign

Taking into account the latest results, the current consensus from VeriSign's four analysts is for revenues of US$1.57b in 2024. This would reflect a modest 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 4.9% to US$7.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.57b and earnings per share (EPS) of US$7.92 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$214. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on VeriSign, with the most bullish analyst valuing it at US$241 and the most bearish at US$200 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of VeriSign'shistorical trends, as the 4.8% annualised revenue growth to the end of 2024 is roughly in line with the 4.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.4% annually. So it's pretty clear that VeriSign is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that VeriSign's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$214, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple VeriSign analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for VeriSign (1 is concerning!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.