Check Point Software Technologies (Nasdaq: CHKP) reported earnings on July 18. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.)
Looking ahead
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.
Investor sentiment
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.
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