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Check Point's (CHKP) Q1 Earnings Beat Estimates, Sales Miss
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Check Point Software Technologies (CHKP - Free Report) reported mixed first-quarter 2023 results, wherein the bottom line surpassed the Zacks Consensus Estimate but the top line missed the same. However, both figures improved year over year.
The IT security solutions provider reported non-GAAP earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.74. The bottom line increased 15% from the year-ago quarter’s earnings of $1.57 per share.
Check Point’s quarterly revenues climbed 4% year over year to $566 million, which missed the Zacks Consensus Estimate of $569 million. The 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 $228.2 million, increasing 13% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues decreased 6.8% year over year to $108 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 $336.2 million, up 5.9% year over year.
Software updates and maintenance revenues increased to $230 million from $225.2 million reported in the year-ago quarter.
As of Mar 31, 2023, deferred revenues were $2 billion, up 8% year over year.
Non-GAAP operating income for the first quarter of 2023 totaled $238 million, down from $239 million in the year-ago quarter. Non-GAAP operating margin contracted 200 basis points to 42%.
Balance Sheet & Other Details
Check Point exited the first quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.62 billion compared with the previous quarter’s $3.50 billion.
The company generated cash worth $386 million from operational activities during the first quarter of 2023.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Other Key Picks
Check Point currently has a Zacks Rank #2 (Buy). Shares of CHKP have declined 7.8% in the past year.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 12.3% upward to $2.74 per share over the past seven days. For 2023, earnings estimates have moved north by 8.5% to $11.34 in the past seven days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have gained 15.2% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have gained 56.8% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 2 cents to $1.95 per share over the past seven days. For 2023, earnings estimates have moved up by 15 cents to $9.35 in the past seven days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched down 7% in the past year.
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Check Point's (CHKP) Q1 Earnings Beat Estimates, Sales Miss
Check Point Software Technologies (CHKP - Free Report) reported mixed first-quarter 2023 results, wherein the bottom line surpassed the Zacks Consensus Estimate but the top line missed the same. However, both figures improved year over year.
The IT security solutions provider reported non-GAAP earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.74. The bottom line increased 15% from the year-ago quarter’s earnings of $1.57 per share.
Check Point’s quarterly revenues climbed 4% year over year to $566 million, which missed the Zacks Consensus Estimate of $569 million. The 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 $228.2 million, increasing 13% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues decreased 6.8% year over year to $108 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 $336.2 million, up 5.9% year over year.
Software updates and maintenance revenues increased to $230 million from $225.2 million reported in the year-ago quarter.
As of Mar 31, 2023, deferred revenues were $2 billion, up 8% year over year.
Non-GAAP operating income for the first quarter of 2023 totaled $238 million, down from $239 million in the year-ago quarter. Non-GAAP operating margin contracted 200 basis points to 42%.
Balance Sheet & Other Details
Check Point exited the first quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.62 billion compared with the previous quarter’s $3.50 billion.
The company generated cash worth $386 million from operational activities during the first quarter of 2023.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Other Key Picks
Check Point currently has a Zacks Rank #2 (Buy). Shares of CHKP have declined 7.8% in the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) . While Meta Platforms and Momo sport a Zacks Rank #1 (Strong Buy), ServiceNow carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 12.3% upward to $2.74 per share over the past seven days. For 2023, earnings estimates have moved north by 8.5% to $11.34 in the past seven days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have gained 15.2% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have gained 56.8% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 2 cents to $1.95 per share over the past seven days. For 2023, earnings estimates have moved up by 15 cents to $9.35 in the past seven days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched down 7% in the past year.