- Adjusted EPS: $2.17, beating estimates of $2.16 and up from $2 year-over-year.
- Reported EPS: $1.74, compared to $1.70 year-over-year.
- Revenue: $627.4 million, a 6.6% increase year-over-year, surpassing the estimate of $623.2 million.
- Product & License Revenue: $118.1 million, a slight increase of 1% year-over-year, beating the estimate of $113.6 million.
- Security Subscriptions Revenue: $271.7 million, a 14% rise year-over-year, slightly missing the estimate of $272.5 million.
- Change in Deferred Revenues, Trade Payables, and Other Accrued Liabilities: $18.9 million, significantly higher than the estimate of -$28 million.
- Cost of Products and Security Subscriptions: $40.8 million, up 13% year-over-year, marginally exceeding the estimate of $40.7 million.
- Products and Licenses Cost: $24.0 million, a 6.2% increase year-over-year, slightly above the estimate of $23.9 million.
- Security Subscriptions Cost: $16.8 million, up 24% year-over-year.
- Cost of Software Updates and Maintenance: $31.6 million, a 16% increase year-over-year, surpassing the estimate of $28.4 million.
- Research & Development Expenses: $97.1 million, an 11% rise year-over-year, lower than the estimate of $100.4 million.
- Software Updates & Maintenance Revenue: $237.6 million, aligning closely with the estimate of $237.5 million.
- Analyst Ratings: 13 buys, 24 holds, and 1 sell.
Check Point Software Tech on Smartkarma
Analyst coverage of Check Point Software Tech on Smartkarma showcases positive sentiment from Baptista Research. In their report titled “Check Point Software Technologies: Potential Opportunities with NVIDIA AI Infrastructure & 5 Critical Growth Drivers,” Golan highlighted the company’s Q1 2022 earnings performance. Check Point Software saw a 13% year-on-year growth in earnings per share to $2.04 and a net income increase of 8% to $235 million.
Further, in another report named “Check Point Software Technologies: Initiation of Coverage – Unleashing the Power of AI to Combat Cyber Threats — Discover the Future of Internet Safety! – Major Drivers,” Baptista Research emphasized the strength of Check Point Software’s fourth quarter in 2023. Operating income reached $309 million with a 7% year-on-year increase, while their non-GAAP operating margin stood at a stable 47%. This positive outlook from analysts suggests bullish sentiments towards the cybersecurity firm.
A look at Check Point Software Tech Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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. has been rated on various factors which provide insight into its long-term outlook. With a value score of 2, the company is considered to have moderate value potential. In terms of dividend, it has received a score of 1, indicating a lower dividend outlook. However, its growth score of 3 suggests promising growth prospects. The resilience score of 5 highlights the company’s ability to weather challenging market conditions effectively. Additionally, with a momentum score of 3, there is moderate momentum in the company’s performance.
Check Point Software Technologies Ltd. is a company focused on developing, marketing, and supporting IT security products and services. Offering a range of solutions including network and gateway security, data and endpoint security, as well as management solutions, the company caters to the growing demand for robust cybersecurity measures. The combination of its product offerings and strategic positioning in the IT security sector positions Check Point Software Technologies Ltd. to capitalize on the increasing importance of cybersecurity in the digital age.
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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