Check Point Software Technologies
The 10-second takeaway
For the quarter ended June 30 (Q2), Check Point Software Technologies met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share expanded.
Margins dropped across the board.
Check Point Software Technologies reported revenue of $340.2 million. The 28 analysts polled by S&P Capital IQ looked for revenue of $339.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.83. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.81 per share. Non-GAAP EPS of $0.83 for Q2 were 7.8% higher than the prior-year quarter's $0.77 per share. GAAP EPS of $0.76 for Q2 were 7.0% higher than the prior-year quarter's $0.71 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 88.5%, 10 basis points worse than the prior-year quarter. Operating margin was 53.9%, 100 basis points worse than the prior-year quarter. Net margin was 44.4%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $347.8 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $3.39.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 369 members out of 391 rating the stock outperform, and 22 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 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 $54.17.
Looking for alternatives to Check Point Software Technologies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Check Point Software Technologies to My Watchlist.
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.