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Check Point (CHKP) Q1 Earnings & Revenues Surpass Estimates

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Check Point Software Technologies (CHKP - Free Report) reported strong first-quarter 2022 results, wherein both the top and bottom lines not only topped the respective Zacks Consensus Estimate but also improved year over year.

The IT security solutions provider reported non-GAAP earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.54. The bottom line improved 2% from the year-ago quarter’s earnings of $1.54 per share.

Check Point’s quarterly revenues increased 7% year over year to $543 million, outpacing the Zacks Consensus Estimate of $534.7 million.

Quarterly Details

Subscription revenues were $201.6 million, climbing 14% year over year on double-digit revenues in CloudGuard and Harmony solutions and a triple-digit sales increase in the Infinity platform.

Products and licenses revenues increased 6.1% year over year to $115.9 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 $317.5 million, up 10.7% year over year.

Software updates and maintenance revenues increased to $225.2 million from $220.9 million reported in the year-ago quarter.

As of Mar 31, 2022, deferred revenues were $1.67 billion, up 14% year over year.

Non-GAAP operating income for the first quarter of 2022 totaled $239 million, down from $246 million in the year-ago quarter. Non-GAAP operating margin contracted 500 basis points to 44%.

Balance Sheet & Other Details

Check Point exited the first-quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.80 billion compared with the previous quarter’s $3.78 billion.

The company generated cash worth $398 million from operational activities during the first quarter.

It repurchased 2.5 million shares for about $325 million during the first quarter.

Zacks Rank & Key Picks

Check Point currently carries a Zacks Rank #3 (Hold). Shares of CHKP have climbed 7.9% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Yelp (YELP - Free Report) and Gogo (GOGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) carrying a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Yelp's first-quarter 2022 loss has been revised a couple of cents southward to 11 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 53.6% to $1.06 per share in the past 60 days.

Yelp's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 632.9%. Shares of YELP have fallen 20.2% in the past year.

The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised downward by a penny to 13 cents per share over the past 30 days. For 2022, Gogo's earnings estimates have moved north by 25% to 65 cents per share in the past 60 days.

Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 65%. Shares of GOGO have soared 68.9% in the past year.

The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past 30 days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have decreased 2.8% in the past year.

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