VeriSign Shares Plunge Following Fourth-Quarter Earnings Miss

Shares of VeriSign plummeted on Friday, dropping 13% to $210.43 in morning trading after hitting a 52-week low of $208.86. The sell-off follows a fourth-quarter performance that failed to satisfy investor expectations, extending the stock's year-over-year decline to 4.4%.

The internet services firm posted a profit of $206.2 million, or $2.23 per share, up from $191.5 million a year earlier. However, the results trailed the $2.35 per share target anticipated by analysts polled by FactSet. While the bottom line disappointed, revenue grew to $425.3 million, narrowly surpassing the $424.4 million consensus.

Revenue and Shareholder Returns

In an effort to bolster investor confidence, VeriSign’s board approved a 5.2% increase to the quarterly dividend. The new payout of 81 cents per share represents an annual yield of 1.3% based on Thursday’s closing price.

The company outlined the following schedule for the distribution:

• The company will pay the dividend on Feb. 27.
• Shareholders of record as of Feb. 19 are eligible for the payout.
• The total annual distribution now stands at $3.24 per share.