- Check Point Software reported an adjusted EPS of $2.21, surpassing both last year’s $2.04 and analyst estimates of $2.19.
- The company’s EPS increased to $1.71 from $1.60 in the previous year.
- Revenue reached $637.8 million, marking a 6.5% year-over-year growth and exceeding the expected $636.2 million.
- Product and license revenue rose by 14% year-over-year to $114.1 million, beating the estimate of $106.1 million.
- Security subscriptions revenue grew by 10% to $290.6 million, slightly below the estimate of $291.7 million.
- Deferred revenues and other liabilities decreased by $142.1 million, more than the anticipated drop of $96 million.
- The cost of products and security subscriptions increased by 22% to $44.4 million, above the expected $41.7 million.
- Security subscriptions costs went up by 30% to $21.4 million, surpassing the estimate of $19.1 million.
- The cost of software updates and maintenance climbed by 12% to $32.1 million, higher than the estimated $29.8 million.
- R&D expenses were $102.1 million, a 2.9% increase year-over-year, but lower than the projected $104.1 million.
- Analyst recommendations include 17 buys, 22 holds, and 1 sell.
Check Point Software Tech on Smartkarma
Analysts at Baptista Research have been closely monitoring Check Point Software Technologies on Smartkarma, a platform for independent investment research. In their report titled “Check Point Software Technologies: Focus on North American Market Expansion to Up Their Game!”, the analysts highlighted the company’s strong fiscal year 2024 performance, including surpassing revenue projections with fourth-quarter revenue of $704 million and non-GAAP earnings per share of $2.70. With a bullish sentiment, the report emphasizes the company’s focus on expanding in the North American market.
In another report by Baptista Research, titled “Check Point Software Technologies: Will The Growth in Subscription Services Last Long Enough? – Major Drivers”, analysts delve into the robust financial performance of Check Point Software in the third quarter of 2024. The company’s revenue increased by 7% to $635 million, slightly exceeding projections, while their non-GAAP EPS rose by 9% to $2.25. With a bullish outlook, the report examines the sustainability of growth in subscription services for the cybersecurity firm.
A look at Check Point Software Tech Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Check Point Software Technologies Ltd., a company focused on IT security solutions, has received promising overall Smart Scores indicating a positive long-term outlook. With high scores in Growth (4) and Resilience (5), the company demonstrates strong potential for future expansion and an ability to weather market challenges. Additionally, its Momentum score of 4 suggests a positive trend in investor interest and stock performance.
While the Value score sits at 2 and the Dividend score at 1, indicating some room for improvement in these areas, the overall outlook for Check Point Software Tech appears optimistic. As a developer of a wide range of security products and services, the company is well-positioned to capitalize on the growing demand for cybersecurity solutions in an increasingly digital world.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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