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Check Point Software Technologies (CHKP - Free Report) reported strong fourth-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 $2.45 per share, beating the Zacks Consensus Estimate of $2.35. The bottom line increased 9% from the year-ago quarter’s earnings of $2.25 per share.
Check Point’s quarterly revenues climbed 7% year over year to $638 million, outpacing the Zacks Consensus Estimate of $633.6 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 $231 million, increasing 13% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 4.2% year over year to $173.4 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 $404.4 million, up 9.1% year over year.
Software updates and maintenance revenues increased to $234.1 million from $228.6 million reported in the year-ago quarter.
As of Dec 31, 2022, deferred revenues were $1.88 billion, up 10% year over year.
Non-GAAP operating income for the fourth quarter of 2022 totaled $289 million, up from $285 million in the year-ago quarter. Non-GAAP operating margin contracted 200 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.50 billion compared with the previous quarter’s $3.57 billion.
The company generated cash worth $230 million and $1.08 billion from operational activities during the fourth quarter and full year 2022.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Key Picks
Check Point currently has a Zacks Rank #3 (Hold). Shares of CHKP have declined 1.1% in the past year.
The Zacks Consensus Estimate for Baidu’s fourth-quarter 2022 earnings has been revised 49 cents southward to $2.14 per share over the past 30 days. For 2022, earnings estimates have dropped by 3.4% to $8.64 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 50.2%. Shares of the company have lost 8.7% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past seven days. For fiscal 2023, earnings estimates have moved north by 24 cents to $7.71 per share in the past seven days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 27.3% in the past year.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 90 days. For 2022, earnings estimates have moved north by 5 cents to 37 cents per share in the past 90 days.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 59.2% in the past year.
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Check Point's (CHKP) Q4 Earnings & Revenues Beat Estimates
Check Point Software Technologies (CHKP - Free Report) reported strong fourth-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 $2.45 per share, beating the Zacks Consensus Estimate of $2.35. The bottom line increased 9% from the year-ago quarter’s earnings of $2.25 per share.
Check Point’s quarterly revenues climbed 7% year over year to $638 million, outpacing the Zacks Consensus Estimate of $633.6 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 $231 million, increasing 13% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 4.2% year over year to $173.4 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 $404.4 million, up 9.1% year over year.
Software updates and maintenance revenues increased to $234.1 million from $228.6 million reported in the year-ago quarter.
As of Dec 31, 2022, deferred revenues were $1.88 billion, up 10% year over year.
Non-GAAP operating income for the fourth quarter of 2022 totaled $289 million, up from $285 million in the year-ago quarter. Non-GAAP operating margin contracted 200 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.50 billion compared with the previous quarter’s $3.57 billion.
The company generated cash worth $230 million and $1.08 billion from operational activities during the fourth quarter and full year 2022.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Key Picks
Check Point currently has a Zacks Rank #3 (Hold). Shares of CHKP have declined 1.1% in the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Baidu (BIDU - Free Report) , Fabrinet (FN - Free Report) and Bandwidth (BAND - Free Report) . While Baidu and Fabrinet sport a Zacks Rank #1 (Strong Buy), Bandwidth carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Baidu’s fourth-quarter 2022 earnings has been revised 49 cents southward to $2.14 per share over the past 30 days. For 2022, earnings estimates have dropped by 3.4% to $8.64 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 50.2%. Shares of the company have lost 8.7% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past seven days. For fiscal 2023, earnings estimates have moved north by 24 cents to $7.71 per share in the past seven days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 27.3% in the past year.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 90 days. For 2022, earnings estimates have moved north by 5 cents to 37 cents per share in the past 90 days.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 59.2% in the past year.