Check Point Software Technologies Ltd. (CHKP - Free Report) ended 2023 on a strong note by reporting overwhelming fourth-quarter results, wherein revenues and earnings both surpassed the respective Zacks Consensus Estimates and marked a significant year-over-year improvement.
The IT security solutions provider reported non-GAAP earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.46. The bottom line increased 5% from the year-ago quarter’s earnings of $2.45 per share and came ahead of its previously provided guidance range of $2.35-$2.55. The year-over-year growth was primarily attributable to increased revenues and improved margins, partially offset by higher income taxes.
Check Point’s quarterly revenues increased 4% year over year to $664 million and surpassed the Zacks Consensus Estimate of $660.3 million. The upside was driven by double-digit growth in Security subscription revenues. The company’s top line also came higher than the midpoint of the previous guidance range of $636-$686 million (midpoint $661 million).
Quarterly Details
Security subscription revenues were $265.8 million, increasing 15% year over year, driven by the adoption of the Infinity platform and the strong demand for the Harmony product family. Products and licenses revenues decreased 8.7% year over year to $158.3 million. Products that 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 $424.1 million, up 4.9% year over year.
Software updates and maintenance revenues increased to $239.4 million from $234.1 million reported in the year-ago quarter.
As of Sep 30, 2023, deferred revenues were $1.91 billion, up 2% year over year.
Non-GAAP gross profit increased 6% year over year to $591 million, while the margin improved 100 basis points (bps) to 89%. Non-GAAP operating income for the fourth quarter of 2023 totaled $309 million, up from $289 million in the year-ago quarter. The non-GAAP operating margin expanded 200 bps to 47%.
Full-Year 2023 Highlights
Check Point’s 2023 revenues increased 4% year over year to $2.42 billion and surpassed the Zacks Consensus Estimate of $2.41 billion. The top line was also almost in line with the midpoint of the previous guidance range of $2.34-$2.51 billion (midpoint $2.425 billion).
The IT security solutions provider reported non-GAAP earnings of $8.42 per share for 2023, beating the Zacks Consensus Estimate of $8.32. The bottom line increased 14% from the 2022 earnings of $7.40 per share and came ahead of its previously provided guidance range of $7.70-$8.30.
Balance Sheet & Other Details
Check Point exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.96 billion compared with the previous quarter’s $2.98 billion.
The company generated cash worth $236 million from operational activities during the fourth quarter and $1.04 billion in 2023. It repurchased 2.2 million shares for about $313 million during the reported quarter. In 2023, the company bought back 9.9 million shares for $1.29 billion.
Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold). Shares of CHKP have soared 27.4% over the past year.
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and NVIDIA Corporation (NVDA - Free Report) . While CrowdStrike and Amazon each sport a Zacks Rank #1 (Strong Buy), NVIDIA 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 CrowdStrike’s fiscal 2024 earnings has been revised upward by a penny to $2.95 per share in the past 60 days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 163.9% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 30 cents to $3.97 per share in the past seven days, which calls for an increase of 36.9% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.5%. AMZN stock has returned 69.1% over the past year.
The consensus mark for NVIDIA’s fiscal 2024 earnings has been revised downward by a penny to $12.30 per share over the past 30 days, indicating a whopping 268.3% increase from fiscal 2023. It has a long-term earnings growth expectation of 13.5%. In the trailing 12 months, NVDA stock has surged 207.3%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Check Point Software Technologies Ltd. (CHKP - Free Report) ended 2023 on a strong note by reporting overwhelming fourth-quarter results, wherein revenues and earnings both surpassed the respective Zacks Consensus Estimates and marked a significant year-over-year improvement.
The IT security solutions provider reported non-GAAP earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.46. The bottom line increased 5% from the year-ago quarter’s earnings of $2.45 per share and came ahead of its previously provided guidance range of $2.35-$2.55. The year-over-year growth was primarily attributable to increased revenues and improved margins, partially offset by higher income taxes.
Check Point’s quarterly revenues increased 4% year over year to $664 million and surpassed the Zacks Consensus Estimate of $660.3 million. The upside was driven by double-digit growth in Security subscription revenues. The company’s top line also came higher than the midpoint of the previous guidance range of $636-$686 million (midpoint $661 million).
Quarterly Details
Security subscription revenues were $265.8 million, increasing 15% year over year, driven by the adoption of the Infinity platform and the strong demand for the Harmony product family. Products and licenses revenues decreased 8.7% year over year to $158.3 million. Products that 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 $424.1 million, up 4.9% year over year.
Software updates and maintenance revenues increased to $239.4 million from $234.1 million reported in the year-ago quarter.
As of Sep 30, 2023, deferred revenues were $1.91 billion, up 2% year over year.
Non-GAAP gross profit increased 6% year over year to $591 million, while the margin improved 100 basis points (bps) to 89%. Non-GAAP operating income for the fourth quarter of 2023 totaled $309 million, up from $289 million in the year-ago quarter. The non-GAAP operating margin expanded 200 bps to 47%.
Full-Year 2023 Highlights
Check Point’s 2023 revenues increased 4% year over year to $2.42 billion and surpassed the Zacks Consensus Estimate of $2.41 billion. The top line was also almost in line with the midpoint of the previous guidance range of $2.34-$2.51 billion (midpoint $2.425 billion).
The IT security solutions provider reported non-GAAP earnings of $8.42 per share for 2023, beating the Zacks Consensus Estimate of $8.32. The bottom line increased 14% from the 2022 earnings of $7.40 per share and came ahead of its previously provided guidance range of $7.70-$8.30.
Balance Sheet & Other Details
Check Point exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.96 billion compared with the previous quarter’s $2.98 billion.
The company generated cash worth $236 million from operational activities during the fourth quarter and $1.04 billion in 2023. It repurchased 2.2 million shares for about $313 million during the reported quarter. In 2023, the company bought back 9.9 million shares for $1.29 billion.
Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold). Shares of CHKP have soared 27.4% over the past year.
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and NVIDIA Corporation (NVDA - Free Report) . While CrowdStrike and Amazon each sport a Zacks Rank #1 (Strong Buy), NVIDIA 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 CrowdStrike’s fiscal 2024 earnings has been revised upward by a penny to $2.95 per share in the past 60 days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 163.9% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 30 cents to $3.97 per share in the past seven days, which calls for an increase of 36.9% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.5%. AMZN stock has returned 69.1% over the past year.
The consensus mark for NVIDIA’s fiscal 2024 earnings has been revised downward by a penny to $12.30 per share over the past 30 days, indicating a whopping 268.3% increase from fiscal 2023. It has a long-term earnings growth expectation of 13.5%. In the trailing 12 months, NVDA stock has surged 207.3%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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