FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Vrsn Beats Q1 Expectations And Raises Guidance; Ai Pushing Growth

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Verisign delivered solid Q1 results with revenue of $429M (+6% Y/Y), exceeding $427M consensus, and EPS of $2.34 (+11.4% Y/Y), beating expectations of $2.27. New registrations surged 13.9% Y/Y to 11.5M, the strongest recent growth, driven by AI tools making website creation faster and easier. We view the structural advantages of VRSN's registry monopoly and AI-driven demand as supportive of the investment thesis. Management raised domain base growth guidance to 3.1%-4.3% from 1.5%-3.5% and revenue guidance to $1.730B-$1.745B, reflecting confidence in AI-driven demand sustainability. The domain base reached 176.1M domains (+3.7% Y/Y) with renewal rates improving to 75.0% from 74.0%. A 6.9% price increase to $10.97 per .com domain takes effect November 2026, providing revenue tailwinds. We believe the divergence between robust earnings growth and declining cash flow generation warrants monitoring as we assess business model sustainability.

Related Articles

Asia

Electro Optic Systems Reports Contract Backlog Growth as of March 31

Electro Optic Systems Holdings (ASX:EOS) reported a contract backlog of AU$518 million as of March 31, up 13% from the end of 2025, according to a Thursday filing with the Australian bourse.The company closed the March quarter with unrestricted cash holdings of AU$95.1 million, representing a decrease of AU$11.8 million from the end of 2025, per the filing.

$ASX:EOS
Asia

Regis Healthcare Expects Fiscal 2026 Underlying EBITDA at Top End of Guidance

Regis Healthcare (ASX:REG) said it expects fiscal 2026 underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of about AU$135 million, at the top end of guidance, according to a Thursday Australian bourse filing.Occupancy across mature homes averaged about 96% in the fiscal third quarter, per the filing.The company said it generated net refundable accommodation deposit (RAD) cash inflows of AU$44.5 million in the third quarter, taking the total net RAD cash inflows for the year to date to AU$223 million.As resident turnover occurs, the progressive repricing of existing paid-up RADs to current advertised room prices is expected to generate net operating cash inflows of about AU$400 million over time while also increasing RAD retention earnings, the company added.

$ASX:REG
Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of Mondelez International

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our 12-month target price of $63, raised $1, reflects a 19x multiple of projected 2027 EPS, in line with MDLZ's historical forward P/E average. We raise our 2026 EPS estimate by $0.06 to $3.08, but cut 2027's by $0.11 to $3.32. We continue to see headwinds related to chocolate and biscuits divisions, though favorable forex has been helping to a degree. MDLZ highlighted plans to stimulate growth with more promotional activity, which could boost revenues (we see an acceleration in revenues in 2027), but may come with the trade-off of narrower margins. We note that cost-saving efforts can also contribute to staving off some of the margin pressure. MDLZ is largely hedged on its cocoa input costs for 2026 but less so in 2027. Thus, if the substantial rise in cocoa pricing in 2025 does not reemerge, it should help the bottom line in 2027 as cost pressures should ease. Share buybacks have also contributed to EPS, and we note that Q1 2026 share count was down 1.5% from one year earlier.

$MDLZ