Check Point Software Technologies Ltd. (NASDAQ:CHKP) Released Earnings Last Week And Analysts Lifted Their Price Target To US$170
Investors in Check Point Software Technologies Ltd. (NASDAQ:CHKP) had a good week, as its shares rose 3.4% to close at US$164 following the release of its yearly results. Results were roughly in line with estimates, with revenues of US$2.4b and statutory earnings per share of US$7.10. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Check Point Software Technologies
Following the latest results, Check Point Software Technologies' 32 analysts are now forecasting revenues of US$2.55b in 2024. This would be a credible 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.1% to US$7.41. Before this earnings report, the analysts had been forecasting revenues of US$2.53b and earnings per share (EPS) of US$7.61 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Despite cutting their earnings forecasts,the analysts have lifted their price target 7.2% to US$170, suggesting that these impacts are not expected to weigh on the stock's value in the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Check Point Software Technologies at US$200 per share, while the most bearish prices it at US$110. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Check Point Software Technologies shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 4.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Check Point Software Technologies is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Check Point Software Technologies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Check Point Software Technologies' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Check Point Software Technologies going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Check Point Software Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
