Check Point Software Technologies
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Check Point Software Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins expanded, net margins grew.
Check Point Software Technologies reported revenue of $332.4 million. The 26 analysts polled by S&P Capital IQ predicted net sales of $332.6 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $308.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.79. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. GAAP EPS of $0.73 for Q3 were 16% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.6%, 10 basis points worse than the prior-year quarter. Operating margin was 55.0%, 370 basis points better than the prior-year quarter. Net margin was 45.9%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $376.2 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $3.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 339 members out of 360 rating the stock outperform, and 21 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 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 $62.14.
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