Does The Street Have Check Point Software Technologies Figured Out?

Check Point Software Technologies (Nasdaq: CHKP  ) is expected to report Q1 earnings on April 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Check Point Software Technologies's revenues will grow 4.8% and EPS will grow 5.4%.

The average estimate for revenue is $328.1 million. On the bottom line, the average EPS estimate is $0.78.

Revenue details
Last quarter, Check Point Software Technologies logged revenue of $368.6 million. GAAP reported sales were 3.3% higher than the prior-year quarter's $356.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.91. GAAP EPS of $0.84 for Q4 were 12% higher than the prior-year quarter's $0.75 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 88.0%, 10 basis points better than the prior-year quarter. Operating margin was 57.1%, 310 basis points better than the prior-year quarter. Net margin was 47.2%, 240 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.42 billion. The average EPS estimate is $3.43.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 364 members out of 387 rating the stock outperform, and 23 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Check Point Software Technologies a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Check Point Software Technologies is outperform, with an average price target of $53.67.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Check Point Software Technologies. The Motley Fool owns shares of Check Point Software Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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