What Happened?
Shares of domain name registry operator Verisign (NASDAQ: VRSN) jumped 6.5% in the afternoon session after the company reported strong second-quarter financial results that beat earnings expectations and demonstrated healthy revenue growth.
The internet infrastructure provider posted revenue of $410 million, marking a 5.9% increase from the prior year's quarter. VeriSign's earnings per share came in at $2.21, slightly ahead of consensus estimates. The positive results were supported by solid operational metrics, including an improved domain renewal rate of 75.5% and an increase in its .com and .net domain name base. In a move signaling confidence, the company's board also authorized a substantial share repurchase plan. Following the impressive quarter, investment firm Baird raised its price target on the stock to $340.
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What Is The Market Telling Us
VeriSign’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
VeriSign is up 49.4% since the beginning of the year, and at $306.48 per share, has set a new 52-week high. Investors who bought $1,000 worth of VeriSign’s shares 5 years ago would now be looking at an investment worth $1,461.
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