- Check Point Software’s adjusted earnings per share (EPS) for the second quarter met expectations at $2.37, compared to $2.17 the previous year.
- Reported EPS was $1.84, up from $1.74 year over year.
- Total revenue reached $665.2 million, marking a 6% increase year over year and exceeded the estimate of $661.7 million.
- Product and license revenue saw a 12% rise year over year, amounting to $131.9 million, surpassing the $124.8 million estimate.
- Security subscriptions revenue increased by 9.6% year over year to $297.9 million, slightly below the $299.8 million estimate.
- Software updates & maintenance revenue was $235.4 million, slightly under the estimate of $238.2 million.
- Changes in deferred revenues and liabilities stood at $66.7 million, well above the estimated $35.1 million.
- Overall costs for products and security subscriptions rose by 21% year over year to $49.2 million, higher than the $45.3 million estimate.
- R&D expenses increased by 16% year over year, totaling $112.8 million, above the $102.8 million estimate.
- CEO Nadav Zafrir noted growth in emerging technology sectors like Email, SASE, and Enterprise Risk Management.
- Quantum Force appliances exhibited continued double-digit growth, highlighting strong customer confidence.
- Analyst ratings: 17 buy positions, 21 hold positions, and 1 sell position.
Check Point Software Tech on Smartkarma
Analyst coverage on Check Point Software Technologies by Baptista Research on Smartkarma reveals a bullish sentiment towards the company’s recent strategic moves. The acquisition of Veriti Cybersecurity for over $100 million signifies a shift towards automated, prevention-first cybersecurity under new CEO Nadav Zafrir. This bold bet aligns with Check Point’s vision for a hybrid mesh architecture and strengthening its Infinity Platform to enhance security across endpoints, cloud, and networks.
In their research reports, Baptista Research also highlights Check Point Software Technologies’ positive performance in fiscal quarters, showcasing steady revenue growth and exceeding earnings per share expectations. With a focus on expanding into the North American market and solid financial results, the company is positioning itself to up its game and capitalize on growth opportunities in the cybersecurity industry.
A look at Check Point Software Tech Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Check Point Software Technologies Ltd. is positioned for a positive long-term outlook according to Smartkarma Smart Scores. With a strong score of 5 for Resilience, the company demonstrates robustness and adaptability in the face of challenges, indicating a stable foundation for future growth. Additionally, its Growth score of 3 suggests potential for expansion and development in the IT security sector.
Despite lower scores in areas such as Dividend and Value, Check Point Software Tech‘s overall outlook remains optimistic based on its solid performance in key areas. By offering a range of IT security solutions, the company is well-positioned to capitalize on the growing demand for secure network and endpoint protection, enhancing its potential for sustained success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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