Check Point Earns $1.44 per Share

We had a good earnings report this morning from Check Point Software (CHKP). The company earned $1.44 for Q3 which was four cents more than estimates.

Previously, Check Point told us to expect earnings to range between $1.36 and $1.44 per share on revenue of $480 to $500 million. Total revenue was $491 million.

I haven’t seen updated guidance yet but from the previous report, CHKP said they project full-year earnings between $5.85 and $6.25 per share and revenue between $1.94 and $2.04 billion.

The shares are up a bit in early trading.

Here are some highlights:

Total Revenue: $491 million, 4 percent increase year over year
Deferred Revenues: $1,242 million, 8 percent increase year over year
GAAP Operating Income: $214 million, representing 44 percent of revenues
Non-GAAP Operating Income: $246 million, representing 50 percent of revenues
GAAP EPS: $1.25, Non-GAAP EPS: $1.44

“During the third quarter, our security subscriptions continued to drive results with 13 percent growth. This was underscored by expanded customer adoption of our cloud solutions,” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “We continued to increase the breadth of our offerings with the introduction of CloudGuard Connect and CloudGuard Edge, providing enterprises with industry leading threat prevention driven by a cloud service.”

Total Revenue: $491 million compared to $471 million in the third quarter of 2018, a 4 percent increase year over year.
GAAP Operating Income: $214 million compared to $226 million in the third quarter of 2018, representing 44 percent and 48 percent of revenues in the third quarter of 2019 and 2018, respectively.
Non-GAAP Operating Income: $246 million compared to $250 million in the third quarter of 2018, representing 50 percent and 53 percent of revenues in the third quarter of 2019 and 2018, respectively.
GAAP Taxes on Income: $47 million compared to $45 million in the third quarter of 2018.
GAAP Net Income & Earnings per Diluted Share: GAAP net income was $188 million compared to $198 million in the third quarter of 2018. GAAP earnings per diluted share were $1.25, same as third quarter of 2018.
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $217 million compared to $219 million in the third quarter of 2018. Non-GAAP earnings per diluted share were $1.44 compared to $1.38 in the third quarter of 2018, a 4 percent increase year over year.
Deferred Revenues: As of September 30, 2019, deferred revenues were $1,242 million compared to $1,148 million as of September 30, 2018, an 8 percent increase year over year.
Cash Balances, Marketable Securities & Short Term Deposits: $4,055 million as of September 30, 2019, compared to $4,072 million as of September 30, 2018.
Cash Flow: Cash flow from operations of $244 million compared to $249 million in the third quarter of 2018.
Share Repurchase Program: During the third quarter of 2019, the company repurchased approximately 2.9 million shares at a total cost of approximately $323 million.

Update

Check Point provided Q4 guidance on the earnings call.

With that said, our revenues for the fourth quarter are expected to be between $527 million to $557 million and non-GAAP EPS is expected to be between $1.93 to $2.04. GAAP EPS is expected to be approximately $0.19 lower.

Posted by on October 28th, 2019 at 10:59 am


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