We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Check Point Software Technologies (CHKP - Free Report) reported second-quarter 2023 results, wherein both the bottom line and the top line surpassed the Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $2.00 per share, beating the Zacks Consensus Estimate of $1.89. The bottom line increased 22% from the year-ago quarter’s earnings of $1.64 per share.
Check Point’s quarterly revenues climbed 3% year over year to $589 million, which surpassed the Zacks Consensus Estimate of $588 million. The upside was driven by double-digit growth in Security subscription revenues.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Security subscription revenues were $239 million, increasing 14% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions. According to our model estimates, Security subscription revenues were likely to grow 7.3% to $225.1 million.
Products and licenses revenues decreased 12% year over year to $117 million. Our estimates for Products and licenses revenues were pegged at $127.7 million, suggesting a 4.1% year-over-year decline. 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 $355.8 million, up 3.7% year over year.
Software updates and maintenance revenues increased to $232.9 million from $228 million reported in the year-ago quarter. The estimates from our model were pegged at $233.1 million for Software updates and maintenance revenues.
As of Jun 30, 2023, deferred revenues were $1.77 billion, up 7% year over year.
Non-GAAP operating income for the second quarter of 2023 totaled $263 million, up from $249 million in the year-ago quarter. Non-GAAP operating margin expanded 150 basis points from 43.5% to 45%.
Balance Sheet & Other Details
Check Point exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.52 billion compared with the previous quarter’s $3.62 billion.
The company generated cash worth $191 million from operational activities during the second quarter of 2023.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Other Stocks to Consider
Currently, Check Point carries a Zacks Rank #2 (Buy). Shares of CHKP have gained 5.1% over the past year.
The Zacks Consensus Estimate for Salesforce’s second-quarter fiscal 2024 earnings has been revised northward by a penny to $1.90 per share over the past 30 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.44 in the past 30 days.
CRM's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.5%. Shares of the company have gained 25.1% in the past year.
The Zacks Consensus Estimate for NVIDIA’s second-quarter fiscal 2024 earnings has been revised northward from $1.04 to $2.04 per share over the past 60 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.66 in the past 30 days.
NVDA's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 0.26%. Shares of the company have soared 155.5% in the past year.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised upward by a penny to $2.83 per share over the past seven days. For 2023, earnings estimates have moved north by 3 cents to $11.97 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 surged 76% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Check Point's (CHKP) Q2 Earnings & Sales Beat Expectations
Check Point Software Technologies (CHKP - Free Report) reported second-quarter 2023 results, wherein both the bottom line and the top line surpassed the Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $2.00 per share, beating the Zacks Consensus Estimate of $1.89. The bottom line increased 22% from the year-ago quarter’s earnings of $1.64 per share.
Check Point’s quarterly revenues climbed 3% year over year to $589 million, which surpassed the Zacks Consensus Estimate of $588 million. The upside was driven by double-digit growth in Security 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 $239 million, increasing 14% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions. According to our model estimates, Security subscription revenues were likely to grow 7.3% to $225.1 million.
Products and licenses revenues decreased 12% year over year to $117 million. Our estimates for Products and licenses revenues were pegged at $127.7 million, suggesting a 4.1% year-over-year decline. 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 $355.8 million, up 3.7% year over year.
Software updates and maintenance revenues increased to $232.9 million from $228 million reported in the year-ago quarter. The estimates from our model were pegged at $233.1 million for Software updates and maintenance revenues.
As of Jun 30, 2023, deferred revenues were $1.77 billion, up 7% year over year.
Non-GAAP operating income for the second quarter of 2023 totaled $263 million, up from $249 million in the year-ago quarter. Non-GAAP operating margin expanded 150 basis points from 43.5% to 45%.
Balance Sheet & Other Details
Check Point exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.52 billion compared with the previous quarter’s $3.62 billion.
The company generated cash worth $191 million from operational activities during the second quarter of 2023.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Other Stocks to Consider
Currently, Check Point carries a Zacks Rank #2 (Buy). Shares of CHKP have gained 5.1% over the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Salesforce (CRM - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Meta Platforms (META - Free Report) . While Salesforce and NVIDIA sport a Zacks Rank #1 (Strong Buy), Meta 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 Salesforce’s second-quarter fiscal 2024 earnings has been revised northward by a penny to $1.90 per share over the past 30 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.44 in the past 30 days.
CRM's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.5%. Shares of the company have gained 25.1% in the past year.
The Zacks Consensus Estimate for NVIDIA’s second-quarter fiscal 2024 earnings has been revised northward from $1.04 to $2.04 per share over the past 60 days. For fiscal 2024, earnings estimates have moved up by 2 cents to $7.66 in the past 30 days.
NVDA's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 0.26%. Shares of the company have soared 155.5% in the past year.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised upward by a penny to $2.83 per share over the past seven days. For 2023, earnings estimates have moved north by 3 cents to $11.97 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 surged 76% in the past year.