Check Point Software Technologies (CHKP - Free Report) reported strong third-quarter 2022 results, wherein both the top and bottom lines surpassed the respective Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased 7% from the year-ago quarter’s earnings of $1.65 per share.
Check Point’s quarterly revenues climbed 8% year over year to $578 million, outpacing the Zacks Consensus Estimate of $572.2 million. This upside was driven by double-digit growth in product and subscription revenues.
Quarterly Details
Security subscription revenues were $215.5 million, increasing 13.4% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 11.2% year over year to $132.4 million. Products, which are currently in the process of transitioning to cloud solutions, have been included in the subscription line.
Total revenues from product and security subscriptions were $347.9 million, up 12.6% year over year.
Software updates and maintenance revenues increased to $229.7 million from $224.9 million reported in the year-ago quarter.
As of Sep 30, 2022, deferred revenues were $1.65 billion, up 13% year over year.
Non-GAAP operating income for the third quarter of 2022 totaled $263 million, up from $261 million in the year-ago quarter. Non-GAAP operating margin contracted 40 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the third quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.57 billion compared with the previous quarter’s $3.68 billion.
The company generated cash worth $240 million from operational activities during the third quarter.
It repurchased 2.7 million shares for about $325 million during the reported quarter.
Outlook
For fourth-quarter 2022, CHKP expects revenues between $608 million and $658 million. It projects non-GAAP earnings in the $2.22-$2.42 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #4 (Sell). Shares of CHKP have increased 7.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Digi International (DGII - Free Report) and Baidu (BIDU - Free Report) . Zscaler and Digi International currently sport a Zacks Rank #1 (Strong Buy). Baidu carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 7 cents southward to $2.44 per share over the past 30 days. For 2022, earnings estimates have moved 1.2% down to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.
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Check Point Software Technologies (CHKP - Free Report) reported strong third-quarter 2022 results, wherein both the top and bottom lines surpassed the respective Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased 7% from the year-ago quarter’s earnings of $1.65 per share.
Check Point’s quarterly revenues climbed 8% year over year to $578 million, outpacing the Zacks Consensus Estimate of $572.2 million. This upside was driven by double-digit growth in product and subscription revenues.
Quarterly Details
Security subscription revenues were $215.5 million, increasing 13.4% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 11.2% year over year to $132.4 million. Products, which are currently in the process of transitioning to cloud solutions, have been included in the subscription line.
Total revenues from product and security subscriptions were $347.9 million, up 12.6% year over year.
Software updates and maintenance revenues increased to $229.7 million from $224.9 million reported in the year-ago quarter.
As of Sep 30, 2022, deferred revenues were $1.65 billion, up 13% year over year.
Non-GAAP operating income for the third quarter of 2022 totaled $263 million, up from $261 million in the year-ago quarter. Non-GAAP operating margin contracted 40 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the third quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.57 billion compared with the previous quarter’s $3.68 billion.
The company generated cash worth $240 million from operational activities during the third quarter.
It repurchased 2.7 million shares for about $325 million during the reported quarter.
Outlook
For fourth-quarter 2022, CHKP expects revenues between $608 million and $658 million. It projects non-GAAP earnings in the $2.22-$2.42 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #4 (Sell). Shares of CHKP have increased 7.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Digi International (DGII - Free Report) and Baidu (BIDU - Free Report) . Zscaler and Digi International currently sport a Zacks Rank #1 (Strong Buy). Baidu carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 7 cents southward to $2.44 per share over the past 30 days. For 2022, earnings estimates have moved 1.2% down to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
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