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Check Point (CHKP) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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Check Point Software Technologies (CHKP - Free Report) reported strong second-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 $1.64 per share, beating the Zacks Consensus Estimate of $1.62. The bottom line increased 2% from the year-ago quarter’s earnings of $1.61 per share.
Check Point’s quarterly revenues climbed 9% year over year to $571 million, outpacing the Zacks Consensus Estimate of $560.1 million. This upside was driven by double-digit growth in product and subscription revenues.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Subscription revenues were $209.9 million, advancing 14% year over year on double-digit revenues in Quantum and CloudGuard solutions and a 50% growth in Harmony, the cybersecurity firm’s cloud email security platform.
Products and licenses revenues increased 12% year over year to $133.2 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 $343.1 million, up 13.3% year over year.
Software updates and maintenance revenues increased to $228 million from $223.3 million reported in the year-ago quarter.
As of Jun 30, 2022, deferred revenues were $1.67 billion, up 13% year over year.
Non-GAAP operating income for the second quarter of 2022 totaled $249 million, down from $257 million in the year-ago quarter. Non-GAAP operating margin contracted 500 basis points to 44%.
Balance Sheet & Other Details
Check Point exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.68 billion compared with the previous quarter’s $3.80 billion.
The company generated cash worth $212 million from operational activities during the second quarter.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Outlook
For third-quarter 2022, CHKP expects revenues between $555 million and $585 million. It projects non-GAAP earnings to be in the $1.60-$1.72 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #3 (Hold). Shares of CHKP have decreased 6.4% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents northward to $1.03 per share over the past seven days. For 2022, earnings estimates have moved 2 cents north to $4.40 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.5%. Shares of ACLS have soared 79.6% in the past year.
The Zacks Consensus Estimate for Keysight's third-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For 2023, earnings estimates have moved 3 cents north to $7.17 per share in the past 30 days.
Keysight’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 8%. Shares of KEYS have fallen 1.9% in the past year.
The Zacks Consensus Estimate for CrowdStrike’s second-quarter fiscal 2023 earnings has been revised 11.5% northward to 29 cents per share over the past 60 days. For 2023, earnings estimates have moved 9.8% up to $1.23 per share in the past 60 days.
CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.3%. Shares of CRWD have decreased 28% in the past year.
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Check Point (CHKP) Q2 Earnings & Revenues Top Estimates, Up Y/Y
Check Point Software Technologies (CHKP - Free Report) reported strong second-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 $1.64 per share, beating the Zacks Consensus Estimate of $1.62. The bottom line increased 2% from the year-ago quarter’s earnings of $1.61 per share.
Check Point’s quarterly revenues climbed 9% year over year to $571 million, outpacing the Zacks Consensus Estimate of $560.1 million. This upside was driven by double-digit growth in product and subscription revenues.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote
Quarterly Details
Subscription revenues were $209.9 million, advancing 14% year over year on double-digit revenues in Quantum and CloudGuard solutions and a 50% growth in Harmony, the cybersecurity firm’s cloud email security platform.
Products and licenses revenues increased 12% year over year to $133.2 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 $343.1 million, up 13.3% year over year.
Software updates and maintenance revenues increased to $228 million from $223.3 million reported in the year-ago quarter.
As of Jun 30, 2022, deferred revenues were $1.67 billion, up 13% year over year.
Non-GAAP operating income for the second quarter of 2022 totaled $249 million, down from $257 million in the year-ago quarter. Non-GAAP operating margin contracted 500 basis points to 44%.
Balance Sheet & Other Details
Check Point exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.68 billion compared with the previous quarter’s $3.80 billion.
The company generated cash worth $212 million from operational activities during the second quarter.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Outlook
For third-quarter 2022, CHKP expects revenues between $555 million and $585 million. It projects non-GAAP earnings to be in the $1.60-$1.72 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #3 (Hold). Shares of CHKP have decreased 6.4% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Axcelis Technologies (ACLS - Free Report) , Keysight Technologies (KEYS - Free Report) and CrowdStrike (CRWD - Free Report) . While Axcelis flaunts a Zacks Rank #1 (Strong Buy), Keysight and CrowdStrike each carry 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 Axcelis' second-quarter 2022 earnings has been revised 3 cents northward to $1.03 per share over the past seven days. For 2022, earnings estimates have moved 2 cents north to $4.40 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.5%. Shares of ACLS have soared 79.6% in the past year.
The Zacks Consensus Estimate for Keysight's third-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For 2023, earnings estimates have moved 3 cents north to $7.17 per share in the past 30 days.
Keysight’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 8%. Shares of KEYS have fallen 1.9% in the past year.
The Zacks Consensus Estimate for CrowdStrike’s second-quarter fiscal 2023 earnings has been revised 11.5% northward to 29 cents per share over the past 60 days. For 2023, earnings estimates have moved 9.8% up to $1.23 per share in the past 60 days.
CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.3%. Shares of CRWD have decreased 28% in the past year.