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Check Point's (CHKP) Q3 Earnings & Revenues Top Estimates
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Check Point Software Technologies (CHKP - Free Report) reported strong third-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 $1.77 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased 7% from the year-ago quarter’s earnings of $1.65 per share.
Check Point’s quarterly revenues climbed 8% year over year to $578 million, outpacing the Zacks Consensus Estimate of $572.2 million. This upside was driven by double-digit growth in product and subscription revenues.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Security subscription revenues were $215.5 million, increasing 13.4% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 11.2% year over year to $132.4 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 $347.9 million, up 12.6% year over year.
Software updates and maintenance revenues increased to $229.7 million from $224.9 million reported in the year-ago quarter.
As of Sep 30, 2022, deferred revenues were $1.65 billion, up 13% year over year.
Non-GAAP operating income for the third quarter of 2022 totaled $263 million, up from $261 million in the year-ago quarter. Non-GAAP operating margin contracted 40 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the third quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.57 billion compared with the previous quarter’s $3.68 billion.
The company generated cash worth $240 million from operational activities during the third quarter.
It repurchased 2.7 million shares for about $325 million during the reported quarter.
Outlook
For fourth-quarter 2022, CHKP expects revenues between $608 million and $658 million. It projects non-GAAP earnings in the $2.22-$2.42 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #4 (Sell). Shares of CHKP have increased 7.2% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 7 cents southward to $2.44 per share over the past 30 days. For 2022, earnings estimates have moved 1.2% down to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.
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Check Point's (CHKP) Q3 Earnings & Revenues Top Estimates
Check Point Software Technologies (CHKP - Free Report) reported strong third-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 $1.77 per share, beating the Zacks Consensus Estimate of $1.67. The bottom line increased 7% from the year-ago quarter’s earnings of $1.65 per share.
Check Point’s quarterly revenues climbed 8% year over year to $578 million, outpacing the Zacks Consensus Estimate of $572.2 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
Security subscription revenues were $215.5 million, increasing 13.4% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 11.2% year over year to $132.4 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 $347.9 million, up 12.6% year over year.
Software updates and maintenance revenues increased to $229.7 million from $224.9 million reported in the year-ago quarter.
As of Sep 30, 2022, deferred revenues were $1.65 billion, up 13% year over year.
Non-GAAP operating income for the third quarter of 2022 totaled $263 million, up from $261 million in the year-ago quarter. Non-GAAP operating margin contracted 40 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the third quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.57 billion compared with the previous quarter’s $3.68 billion.
The company generated cash worth $240 million from operational activities during the third quarter.
It repurchased 2.7 million shares for about $325 million during the reported quarter.
Outlook
For fourth-quarter 2022, CHKP expects revenues between $608 million and $658 million. It projects non-GAAP earnings in the $2.22-$2.42 per share band.
Zacks Rank & Key Picks
Check Point currently carries a Zacks Rank #4 (Sell). Shares of CHKP have increased 7.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Digi International (DGII - Free Report) and Baidu (BIDU - Free Report) . Zscaler and Digi International currently sport a Zacks Rank #1 (Strong Buy). Baidu 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 Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 7 cents southward to $2.44 per share over the past 30 days. For 2022, earnings estimates have moved 1.2% down to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.