- Check Point Software’s Q4 revenue was $703.7 million, a 6.1% year-over-year increase, matching the $698.5 million estimate.
- Product & license revenue increased by 7.8% year-over-year to $170.6 million, surpassing the estimate of $161.9 million.
- Security subscriptions revenue rose by 9.9% to $292.2 million, slightly below the $293.7 million estimate.
- Software updates & maintenance revenue was $240.9 million, just shy of the $243.3 million estimate.
- Adjusted earnings per share (EPS) were $2.70, compared to $2.57 the previous year, exceeding the $2.65 estimate.
- Basic EPS was announced at $2.30, up from $2.15 year-over-year.
- Costs for products and security subscriptions were reported at $49.3 million, up 9.1% year-over-year, and slightly under the $51.8 million estimate.
- Product and licenses costs increased by 5.7% to $29.6 million, below the $31.8 million estimate.
- Security subscriptions costs saw a 15% increase to $19.7 million, closely matching the estimate of $19.6 million.
- Software updates and maintenance costs rose 9.5% to $33.4 million, above the $30.5 million estimate.
- Research and development expenses were $101.1 million, a 1.1% increase year-over-year, lower than the estimated $106.9 million.
- Analyst ratings: 12 buys, 24 holds, 2 sells.
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Check Point Software Tech on Smartkarma
On Smartkarma, independent investment analysts such as Baptista Research have been providing coverage on Check Point Software Technologies. In one report titled “Check Point Software Technologies: Will The Growth in Subscription Services Last Long Enough? – Major Drivers,” Baptista Research highlighted the robust financial performance of Check Point in the third quarter of 2024. The company reported a revenue increase of 7% to $635 million, surpassing their projections, with a non-GAAP EPS growth of 9% to $2.25.
In another report by Baptista Research titled “Check Point Software Technologies: Expansion of Infinity Platform and Large Deals Catalyzing The Top-Line Performance! – Major Drivers,” the analysts noted Check Point’s solid financial results in the recent quarter. The company achieved a 7% increase in revenues to $627 million and saw non-GAAP EPS grow by 8% to $2.17. These reports showcase the positive sentiment and insights provided by top independent analysts on Smartkarma regarding Check Point Software Technologies.
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. has been assessed utilizing the Smartkarma Smart Scores, providing a comprehensive insight into its long-term prospects. The company received a varied range of scores across different factors. While its value and dividend scores were modest, with a score of 2 and 1 respectively, its growth outlook scored a respectable 3. Notably, Check Point Software Tech excelled in resilience, obtaining the highest score of 5, indicating a strong ability to weather uncertainties. However, its momentum score stood at 2, suggesting a moderate trajectory in the near future.
Overall, based on these scores, it can be inferred that Check Point Software Technologies Ltd. has a solid foundation in terms of resilience, with room for growth and improvement in other areas. With its focus on IT security products and services, including network and gateway security solutions, data and endpoint security solutions, and management solutions, the company is positioned to capitalize on the growing demand for cybersecurity solutions in the digital landscape.
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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