Key PointsCyber security stocks are in an uptrend driven by growth supported by the rising use of the cloud and the growing threat to it. Fortinet uses its robust cash flow to repurchase shares, reducing the count by 2% in 2023. Check Point is a smaller business with superior margins and share-repurchasing power. 5 stocks we like better than Check Point Software TechnologiesCyber security stocks Check Point Software NASDAQ: CHKP and Fortinet NASDAQ: FTNT can hit new highs, but one is the better buy. While C ...

Check Point Software Technologies Ltd. (CHKP) ended 2023 on a strong note by reporting overwhelming fourth-quarter results, wherein revenues and earnings both surpassed the respective Zacks Consensus Estimates and marked a significant year-over-year improvement.The IT security solutions provider reported non-GAAP earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.46. The bottom line increased 5% from the year-ago quarter’s earnings of $2.45 per share and came ahead of its previously pro ...

Financial Data and Key Metrics Changes - The company reported revenues of $664 million for Q4 2023, exceeding the midpoint of projections by $3 million, with a year-over-year growth of 7% [123] - For the full year 2023, revenues reached $2.450 billion, representing a 4% year-over-year growth, while EPS was $8.42, reflecting a 14% growth year-over-year, marking the highest quarterly EPS since 2011 [124] - The operating income for Q4 was $309 million, with a strong operating margin of 47% [123] Business Line Data and Key Metrics Changes - The Infinity platform is becoming increasingly significant, contributing to strong double-digit growth in new business bookings [28] - Subscription services are growing consistently at about 15% per year, showing a slight acceleration [34] - Product revenues have been declining, but product orders increased by double digits in the last quarter, indicating positive trends heading into 2024 [36] Market Data and Key Metrics Changes - The company has seen a significant increase in customer engagement, doubling the number of customers and meeting with three times more prospects in 2023 [10] - There is a noted increase in pipeline size, although the growth rate does not match the increase in customer meetings due to the sales force focusing on low-hanging fruit [12] - The company is optimistic about the demand for its products, particularly in the Infinity and subscription business, despite ongoing economic challenges [17] Company Strategy and Development Direction - The company aims to leverage its financial strength to create more annuity-based business models, transitioning capital investment models into subscription models [24] - The focus for 2024 is on enhancing the Infinity platform, which is cloud-delivered and AI-powered, emphasizing comprehensive, consolidated, and collaborative cybersecurity solutions [102][104] - The management is committed to winning new customers and expanding the sales force's focus on acquiring new logos as a top priority for 2024 [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing economic challenges but expresses optimism about a slight turnaround in business conditions, particularly in Q4 2023 [98] - There is a recognition of the uncertainties in the market, with management emphasizing the need for consistent execution despite external challenges [16] - The company is preparing for potential growth in 2024, driven by increased customer engagement and a robust pipeline [91] Other Important Information - The company has seen a significant increase in large deals, particularly in government transactions, with double-digit growth in both the number of deals and dollar value [49] - The management is in the process of transitioning leadership, with the CEO moving to an Executive Chairman role while remaining actively involved in the company's future [118][120] Q&A Session Summary Question: Why is the leadership transition happening now? - The CEO indicated that the timing is right due to strong product performance and positive trends observed in Q4 2023, alongside a desire to focus on shaping the future of the cybersecurity market [106][110] Question: What are the key characteristics sought in a new CEO? - The management is looking for a candidate who is passionate about cybersecurity, detail-oriented, and capable of engaging with customers and partners globally [3][4] Question: How does the company plan to drive billings growth in 2024? - The CFO mentioned that consistent growth in new business, as seen in Q4, is expected to translate into billing growth, aided by more flexible billing terms [20][22]

For the quarter ended December 2023, Check Point Software (CHKP) reported revenue of $663.5 million, up 3.9% over the same period last year. EPS came in at $2.57, compared to $2.45 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $660.3 million, representing a surprise of +0.48%. The company delivered an EPS surprise of +4.47%, with the consensus EPS estimate being $2.46.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Check Point Software (CHKP) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.46 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.47%. A quarter ago, it was expected that this data security company would post earnings of $2.02 per share when it actually produced earnings of $2.07, delivering a surprise of 2.48%.Over the last four quart ...

SAN CARLOS, Calif., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. (NASDAQ:CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023         Total Revenues: $664 million, a 4 percent increase year over yearSecurity Subscriptions Revenues: $266 million, a 15 percent increase year over yearDeferred Revenues: $1,908 million, a 2 percent increase year over yearGAAP Operating Income: $252 million, representing 38 perc ...

SAN CARLOS, Calif., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ:CHKP), a leading AI-powered, cloud-delivered cyber security platform provider, revealed today that its Check Point Infinity Platform has achieved an outstanding 99.8% block rate on Zero+1 day Malware, and a 100% phishing prevention score in Miercom's Next Generation Firewall (NGFW) Security Benchmark 2024 report. By comparison, the average new malware block rate for the other four security vendors was 69.2%. ...

Wall Street analysts forecast that Check Point Software (CHKP) will report quarterly earnings of $2.46 per share in its upcoming release, pointing to a year-over-year increase of 0.4%. It is anticipated that revenues will amount to $660.3 million, exhibiting an increase of 3.4% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this peri ...

BANGKOK, Thailand, Jan. 31, 2024 (GLOBE NEWSWIRE) -- CPX APAC – Check Point® Software Technologies Ltd. (NASDAQ:CHKP), a leading AI-powered, cloud-delivered cyber security platform provider, announces the launch of Check Point Quantum Spark 1900 and 2000, the latest additions to its next-generation firewall series for small and medium business (SMBs). These advanced security gateways are specifically engineered to protect SMBs from ever-evolving cyber threats. The new Quantum Spark security gateways offer h ...

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