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What: Shares of Check Point Software Technologies (NASDAQ:CHKP) got crushed today, down by 14% at the low, after the company reported third-quarter earnings.
So what: Revenue rose 8% from last year to $332.4 million, which resulted in non-GAAP net income of $164.1 million, or $0.79 per share. Those figures were mostly in line with the market's forecasts, which called for sales of $332.6 million and profits of $0.78 per share. The real culprit was in the guidance.
Now what: The company expects fourth-quarter earnings per share in the range of $0.83 to $0.91, the midpoint of which would fall short relative to investor expectations of $0.90 per share. CEO Gil Shwed attributed the conservative stance to "uncertainty in Europe," while performance in North America remained solid with double-digit growth. Rival Fortinet (NASDAQ: FTNT) recently also cut its full-year guidance due to weak demand in Europe, so these woes are hurting the broader sector.
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Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool owns shares of Check Point Software Technologies. Motley Fool newsletter services recommend 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.