Back to top

Image: Bigstock

Check Point (CHKP) to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

Check Point Software Technologies (CHKP - Free Report) is scheduled to report first-quarter 2021 results on Apr 26.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.05%.

For the first quarter, Check Point projects revenues between $485 million and $515 million (mid-point $500 million). The Zacks Consensus Estimate for revenues is pegged at $502.07 billion, suggesting a 3.2% increase from the year-ago quarter’s reported figure.

Additionally, it forecasts adjusted earnings per share in the range of $1.45-$1.55. The consensus mark for earnings is pinned at $1.49 per share, implying a 4.93% year-on-year increase.

Let’s see how things have shaped up prior to this announcement.

Key Factors

Check Point’s quarterly performance is likely to have benefited from increased security subscriptions on solid demand for its CloudGuard and Infinity products.

Additionally, a huge global workforce is working remotely in an effort to contain the spread of the COVID-19 virus infection. However, more people logging into employers' networks means a greater need for security. This trend is anticipated to have fueled demand for Check Point’s products during the quarter under review.

Moreover, increased demand for network security gateways to support higher capacities amid the work-from-home wave is expected to have spurred demand for the company’s remote access VPN solutions.

Nevertheless, the firm’s elevated investments in sales and marketing (S&M) efforts might have clipped margins during the quarter to be reported.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Check Point this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Check Point has an Earnings ESP of 0.00% and a Zacks Rank of 3, at present.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:

Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +4.25% and currently, a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank of 2, currently.

Alphabet Inc. (GOOGL - Free Report) has an Earnings ESP of +4.16% and a Zacks Rank #3, at present.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>

Published in