Check Point Software Earns $1.58 per Share

The stock market is bouncing back this morning. Check Point Software (CHKP) reported Q4 results of $1.58 per share which topped estimates by eight cents per share. The company had projected earnings between $1.45 and $1.55 per share. For the year, CHKP made $5.33 per share which was an increase of 13% over 2016.

“Fourth quarter revenues were in line with our projections while EPS exceeded the top end of our range. As we move into 2018, the cyberattacks that organizations are experiencing today are now Gen V (5th Generation) while most enterprise security protections deployed are still below Gen III (3rd Generation)” Said Gil Shwed, Founder and CEO of Check Point Software Technologies. “To enable customers to bridge the gap we have launched Infinity Total Protection – a revolutionary security consumption model that is designed to enable organizations of all sizes to close the gap and prevent Gen V cyberattacks.”

Here are some financial highlights for the quarter.

• Total Revenue: $506 million compared to $487 million in the fourth quarter of 2016, a 4 percent increase year over year.

• Security Subscriptions Revenues: $130 million compared to $110 million in the fourth quarter of 2016, an 18 percent increase year over year.

• GAAP Operating Income: $267 million compared to $241 million in the fourth quarter of 2016, representing 53 percent and 50 percent of revenues in 2017 and 2016, respectively.

• Non-GAAP Operating Income: $292 million compared to $266 million in the fourth quarter of 2016, representing 58 percent and 55 percent of revenues in 2017 and 2016, respectively.

• GAAP Taxes on Income: $40 million compared to $30 million in the fourth quarter of 2016.

• GAAP Net Income and Earnings per Diluted Share: GAAP net income was $239 million compared to $222 million in the fourth quarter of 2016. GAAP earnings per diluted share were $1.46 compared to $1.31 in the fourth quarter of 2016, an 11 percent increase year over year.

• Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $259 million compared to $247 million in the fourth quarter of 2016. Non-GAAP earnings per diluted share were $1.58 compared to $1.46 in the fourth quarter of 2016, an 8 percent increase year over year.

• Deferred Revenues: As of December 31, 2017, deferred revenues were $1,187 million compared to $1,066 million as of December 31, 2016, an 11 percent increase year over year.

• Cash Flow: Cash flow from operations of $248 million compared to $183 million in the fourth quarter of 2016.

• Share Repurchase Program: During the fourth quarter of 2017, the company repurchased approximately 2.4 million shares at a total cost of approximately $250 million.

AFLAC is due to report later today.

Posted by on January 31st, 2018 at 9:46 am


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