Why Check Point Software Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Check Point Software (Nasdaq: CHKP  ) have plunged today by as much as 12% after the company reported earnings.

So what: Both revenue and earnings in the first quarter came in slightly ahead of the Street's expectations, with $313.1 million in sales and a profit of $0.74 per share. The real kicker was in guidance for the coming quarter, which left investors wanting more.

Now what: Second-quarter sales should be in the range of $324 million-$336 million, with adjusted earnings per share of $0.74-$0.77. Analysts' estimates of $333.7 million in revenue and a $0.76 per share profit are within reach, but are on the high end of the company's guidance. However, CEO Gil Schwed did reiterate full-year outlook for earnings of $3.10-$3.20 per share.

Interested in more info on Check Point Software? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Check Point Software Technologies. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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