Check Point Software Technologies Beats Analyst Estimates on EPS

Check Point Software Technologies (Nasdaq: CHKP  ) reported earnings on Jan. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Check Point Software Technologies met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and earnings per share increased significantly.

Margins increased across the board.

Revenue details
Check Point Software Technologies reported revenue of $357 million. The 24 analysts polled by S&P Capital IQ predicted revenue of $356 million. Sales were 12% higher than the prior-year quarter's $319 million

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.84. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.81 per share on the same basis. GAAP EPS of $0.75 for Q4 were 16% higher than the prior-year quarter's $0.65 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 87.9%, 10 basis points better than the prior-year quarter. Operating margin was 54.0%, 310 basis points better than the prior-year quarter. Net margin was 44.8%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $314 million. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $1.4 billion. The average EPS estimate is $3.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 314 members out of 337 rating the stock outperform, and 23 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Check Point Software Technologies a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Check Point Software Technologies is outperform, with an average price target of $64.71.

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