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Check Point (CHKP) Q1 Earnings & Sales Beat Expectations
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Check Point Software Technologies (CHKP - Free Report) reported first-quarter 2024 results, wherein both the bottom and top lines surpassed the Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $2.04 per share, beating the Zacks Consensus Estimate of $2.01. The bottom line increased 13% from the year-ago quarter’s earnings of $1.8 per share.
Check Point’s quarterly revenues increased 6% year over year to $598.8 million and surpassed the Zacks Consensus Estimate of $595 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 $263 million, which increased 15% year over year, driven by the adoption of cloud solutions and strong demand for the Harmony product family. Our model estimate for security subscription revenues was pegged at $263.4 million, up 15.1%.
Products and licenses revenues decreased 7.13% year over year to $100.3 million. Our model estimate for products and licenses revenues was pegged at $101.3 million, which decreased 6.2% year over year. Products that 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 $598.8 million, up 5.8% year over year.
Software updates and maintenance revenues increased to $235.1 million from $230 million reported in the year-ago quarter. Our model estimate for software updates and maintenance revenues was pegged at $233.5 million.
As of Mar 31, 2024, deferred revenues were $1.83 billion, up 2% year over year.
Non-GAAP operating income for the first quarter of 2024 totaled $284 million, up from $264 million reported in the year-ago quarter. Non-GAAP operating margin was 42%, which remained unchanged year over year.
Balance Sheet & Other Details
Check Point exited the first quarter with cash and cash equivalents, marketable securities and short-term deposits of $3 billion compared with the previous quarter’s $2.96 billion.
The company generated cash worth $361 million from operational activities during the first quarter of 2024.
It repurchased approximately two million shares for about $325 million during the reported quarter.
Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold).
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Check Point (CHKP) Q1 Earnings & Sales Beat Expectations
Check Point Software Technologies (CHKP - Free Report) reported first-quarter 2024 results, wherein both the bottom and top lines surpassed the Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $2.04 per share, beating the Zacks Consensus Estimate of $2.01. The bottom line increased 13% from the year-ago quarter’s earnings of $1.8 per share.
Check Point’s quarterly revenues increased 6% year over year to $598.8 million and surpassed the Zacks Consensus Estimate of $595 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 $263 million, which increased 15% year over year, driven by the adoption of cloud solutions and strong demand for the Harmony product family. Our model estimate for security subscription revenues was pegged at $263.4 million, up 15.1%.
Products and licenses revenues decreased 7.13% year over year to $100.3 million. Our model estimate for products and licenses revenues was pegged at $101.3 million, which decreased 6.2% year over year. Products that 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 $598.8 million, up 5.8% year over year.
Software updates and maintenance revenues increased to $235.1 million from $230 million reported in the year-ago quarter. Our model estimate for software updates and maintenance revenues was pegged at $233.5 million.
As of Mar 31, 2024, deferred revenues were $1.83 billion, up 2% year over year.
Non-GAAP operating income for the first quarter of 2024 totaled $284 million, up from $264 million reported in the year-ago quarter. Non-GAAP operating margin was 42%, which remained unchanged year over year.
Balance Sheet & Other Details
Check Point exited the first quarter with cash and cash equivalents, marketable securities and short-term deposits of $3 billion compared with the previous quarter’s $2.96 billion.
The company generated cash worth $361 million from operational activities during the first quarter of 2024.
It repurchased approximately two million shares for about $325 million during the reported quarter.
Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold).
Docebo (DCBO - Free Report) , Diebold Nixdorf, Incorporated (DBD - Free Report) and Amdocs (DOX - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While DCBO and DBD sport a Zacks Rank #1 (Strong Buy) each, DOX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of DCBO have lost 9.1% year to date. The company is set to report first-quarter 2024 results on May 9.
Shares of DBD have climbed 11.6% year to date. It is slated to report first-quarter 2024 results on May 2.
Shares of DOX have lost 2.6% year to date. The company is set to report first-quarter 2024 results on May 8.