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It's Showtime for Check Point Software Technologies

By Seth Jayson - Updated Apr 7, 2017 at 12:24PM

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Checking expectations

Check Point Software Technologies (Nasdaq: CHKP) is expected to report Q3 earnings on Oct. 17. 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 expand 7.9% and EPS will grow 6.9%.

The average estimate for revenue is $332.6 million. On the bottom line, the average EPS estimate is $0.77.

Revenue details
Last quarter, Check Point Software Technologies recorded revenue of $328.6 million. GAAP reported sales were 9.3% higher than the prior-year quarter's $300.6 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 $0.77. GAAP EPS of $0.71 for Q2 were 18% higher than the prior-year quarter's $0.60 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 88.6%, 10 basis points better than the prior-year quarter. Operating margin was 54.9%, 500 basis points better than the prior-year quarter. Net margin was 45.6%, 300 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.36 billion. The average EPS estimate is $3.16.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 330 members out of 350 rating the stock outperform, and 20 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Check Point Software Technologies a green thumbs-up, and four 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 $66.71.

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Stocks Mentioned

Check Point Software Technologies Ltd. Stock Quote
Check Point Software Technologies Ltd.
CHKP
$122.03 (1.18%) $1.42

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