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Factors to Note Ahead of Check Point's (CHKP) Q2 Earnings
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Check Point Software Technologies (CHKP - Free Report) is set to report second-quarter 2022 results on Aug 1.
For the second quarter, Check Point projects revenues between $545 million and $575 million ($560 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $560 million, suggesting a 6.4% increase from the year-ago quarter’s reported figure.
Additionally, CHKP forecasts adjusted earnings per share in the range of $1.55-$1.65 ($1.60 at the midpoint). The consensus mark for earnings stands at $1.62 per share, a penny higher than the year-ago quarter’s earnings of $1.61.
Let’s see how things have shaped up before this announcement.
Check Point Software Technologies Ltd. Price and EPS Surprise
The hybrid work environment has urged the greater need for network security. This trend is anticipated to have fueled the demand for Check Point’s products during the quarter under review.
Moreover, the increased demand for network security gateways to support higher capacities amid the hybrid work environment is expected to have spurred the demand for CHKP’s remote access VPN (virtual private network) solutions.
Additionally, Check Point’s quarterly performance is likely to have benefited from increased security subscriptions due to the solid demand for its CloudGuard, Harmony, Sandblast Zero-day threat prevention and Infinity solutions.
However, continued industry-wide component supply constraints might have impacted the company’s ability to meet the demand for its products and solutions, thereby hurting Check Point’s overall sales during the second quarter. Moreover, the firm’s elevated investments in sales and marketing 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. However, that’s not the case here.
Check Point currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Valero Energy (VLO - Free Report) , PBF Energy (PBF - Free Report) and Apple (AAPL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Valero sports a Zacks Rank #1 and has an Earnings ESP of +10.22%. The company is scheduled to report second-quarter 2022 results on Jul 28. Valero’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLO’s second-quarter earnings is pegged at $8.78 per share, indicating a sharp improvement from the year-ago quarter’s earnings of 48 cents per share. The consensus mark for revenues stands at $39.7 billion, suggesting a year-over-year increase of 42.9%.
PBF Energy currently sports a Zacks Rank #1 and has an Earnings ESP of +20.67%. The company is slated to report its second-quarter 2022 results on Jul 28. PBF Energy’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 61.5%.
The Zacks Consensus Estimate for PBF Energy’s second-quarter earnings stands at $6.57 per share, implying a strong improvement from the year-ago quarter’s loss of $1.26. PBF is estimated to report revenues of $9.8 billion, which suggests growth of 42.3% from the year-ago quarter.
Apple is slated to report third-quarter fiscal 2022 results on Jul 28. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.32% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 11.9%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.14 per share, suggesting a year-over-year decline of 12.3%. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion.
Image: Bigstock
Factors to Note Ahead of Check Point's (CHKP) Q2 Earnings
Check Point Software Technologies (CHKP - Free Report) is set to report second-quarter 2022 results on Aug 1.
For the second quarter, Check Point projects revenues between $545 million and $575 million ($560 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $560 million, suggesting a 6.4% increase from the year-ago quarter’s reported figure.
Additionally, CHKP forecasts adjusted earnings per share in the range of $1.55-$1.65 ($1.60 at the midpoint). The consensus mark for earnings stands at $1.62 per share, a penny higher than the year-ago quarter’s earnings of $1.61.
Let’s see how things have shaped up before this announcement.
Check Point Software Technologies Ltd. Price and EPS Surprise
Check Point Software Technologies Ltd. price-eps-surprise | Check Point Software Technologies Ltd. Quote
Things to Note Before Q2 Earnings
The hybrid work environment has urged the greater need for network security. This trend is anticipated to have fueled the demand for Check Point’s products during the quarter under review.
Moreover, the increased demand for network security gateways to support higher capacities amid the hybrid work environment is expected to have spurred the demand for CHKP’s remote access VPN (virtual private network) solutions.
Additionally, Check Point’s quarterly performance is likely to have benefited from increased security subscriptions due to the solid demand for its CloudGuard, Harmony, Sandblast Zero-day threat prevention and Infinity solutions.
However, continued industry-wide component supply constraints might have impacted the company’s ability to meet the demand for its products and solutions, thereby hurting Check Point’s overall sales during the second quarter. Moreover, the firm’s elevated investments in sales and marketing 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. However, that’s not the case here.
Check Point currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Valero Energy (VLO - Free Report) , PBF Energy (PBF - Free Report) and Apple (AAPL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Valero sports a Zacks Rank #1 and has an Earnings ESP of +10.22%. The company is scheduled to report second-quarter 2022 results on Jul 28. Valero’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLO’s second-quarter earnings is pegged at $8.78 per share, indicating a sharp improvement from the year-ago quarter’s earnings of 48 cents per share. The consensus mark for revenues stands at $39.7 billion, suggesting a year-over-year increase of 42.9%.
PBF Energy currently sports a Zacks Rank #1 and has an Earnings ESP of +20.67%. The company is slated to report its second-quarter 2022 results on Jul 28. PBF Energy’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 61.5%.
The Zacks Consensus Estimate for PBF Energy’s second-quarter earnings stands at $6.57 per share, implying a strong improvement from the year-ago quarter’s loss of $1.26. PBF is estimated to report revenues of $9.8 billion, which suggests growth of 42.3% from the year-ago quarter.
Apple is slated to report third-quarter fiscal 2022 results on Jul 28. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.32% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 11.9%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.14 per share, suggesting a year-over-year decline of 12.3%. AAPL’s quarterly revenues are estimated to increase 0.6% year over year to $81.9 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.