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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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 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.