Saturday, November 15, 2014

Check Point Software Earnings Analysis

he information-technology network security sector is unusual in the sense that its leading companies offer markedly different maturity levels. If FireEye and Palto Alto Networks (NYSE: PANW  ) are the new kids on the block, and Fortinet (NASDAQ: FTNT  ) is the maturing teenager, then Check Point Software (NASDAQ: CHKP  ) is very much the mature old uncle. With that said, Fools shouldn't dismiss the stock as unexciting. On the contrary, there was a lot to like about Check Point's recent third-quarter earnings, and the numbers confirm that the company's business strategy is working. Time for a look.



Check Point Software's third-quarter results

Highlights of its earnings and guidance for the upcoming fourth quarter:

  • Third-quarter revenue of $370.4 million vs. analyst estimate of $367.1 million
  • Third-quarter earnings per share of $0.93 vs. analyst estimates of $0.91
  • Fourth-quarter revenue guidance of $395 million-$430 million vs. analyst estimate of $410.3 million
  • Fourth-quarter EPS guidance of $0.99-$1.09 vs. analyst estimate of $1.03

In summary, revenue and EPS beat analyst expectations and guidance was ahead of what the market projected. This is obviously good news, particularly because Check Point's management is known for giving conservative guidance.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED

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