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Check Point (CHKP) Q1 Earnings & Revenues Beat Estimates

Check Point Software Technologies Ltd. CHKP reported first-quarter 2021 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. The company’s non-GAAP earnings per share of $1.54 beat the consensus mark of $1.49. The figure also climbed 9% year over year.

Revenues for the reported quarter came in at $508 million, up 4% year on year. Moreover, the figure exceeded the Zacks Consensus Estimate of $502 million. Double-digit growth in CloudGuard contributed to the upside.

Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise

Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise

Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote

Quarter Details

Subscription revenues came in at $177.4 million, increasing 11.7% year over year on solid demand for its advanced solutions, primarily CloudGuard, Sandblast Zero-day threat prevention and Infinity solutions.

However, revenues of $161 million from products and licenses edged down 1%. Products are currently in the process of transitioning to cloud solutions, which are included in the subscription line.

Total revenues from product and security subscriptions came in at $286.7 million, up 6.58% year on year.

Software update and maintenance revenues increased to $220.9 million from $217.5 million reported in the year-ago quarter.

As of Mar 31, 2021, deferred revenues were $1.08 billion, down 2.7% year over year.

Non-GAAP operating income for the reported quarter came in at $246 million, up 6.5% year over year. Non-GAAP operating margin expanded 100 bps to 49%.

Balance Sheet & Other Financial Details

Check Point exited the first quarter with cash and cash equivalents, marketable securities and short-term deposits of $4.1 billion compared with the previous quarter’s $4 billion.

The company generated cash worth $374.5 million from operational activities during the first quarter.

It repurchased 2.7 million shares for about $325 million during the March-end quarter.

Zacks Rank & Other Stocks to Consider

Check Point currently carries a Zacks Rank #3 (Hold).

A few other top-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA, Micron Technology, Inc. MU and Etsy, Inc. ETSY, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for NVIDIA, Micron and Etsy is currently pegged at 15.05%, 15.66% and 19.43%, respectively.

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Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report

Micron Technology, Inc. (MU) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Etsy, Inc. (ETSY) : Free Stock Analysis Report

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