Check Point Stock Rises 7% as Q4 Earnings and Revenues Beat Estimates

Core Insights - Check Point Software Technologies Ltd. (CHKP) shares rose 7.4% following the release of better-than-expected fourth-quarter 2024 results, with non-GAAP earnings of $2.70 per share, surpassing the Zacks Consensus Estimate of $2.66 and meeting the upper end of management's guidance [1][8] Financial Performance - Fourth-quarter revenues reached $703.7 million, exceeding the consensus estimate of $698.2 million and above the guided range of $675-$715 million, marking a 6% year-over-year increase driven by an 8% rise in the Quantum Force appliance business and strong growth in Harmony Email and Infinity Platform revenues [3][4] - Security subscription revenues were $292.2 million, up 9.9% year-over-year, while products and licenses revenues increased 7.8% to $170.6 million, both surpassing Zacks Consensus Estimates [4] - Non-GAAP gross profit rose 6% year-over-year to $623 million, maintaining a gross margin of 89% [6] - Non-GAAP operating income for Q4 2024 was $306 million, down from $309 million in the previous year, with a non-GAAP operating margin of 43.5%, reflecting a contraction of 300 basis points due to increased operating expenses [7] Annual Performance - For the full year 2024, Check Point reported non-GAAP earnings of $9.16 per share, exceeding the Zacks Consensus Estimate of $9.11 and reflecting a 9% increase from the previous year's earnings of $8.42 per share [8] - Full-year revenues totaled $2.57 billion, surpassing the consensus mark of $2.56 billion and the guided range of $2.475-$2.625 billion, also representing a 6% year-over-year increase [9] Cash Flow and Balance Sheet - The company generated $249 million in cash from operational activities in Q4 and $1.06 billion for the full year, with stock repurchases amounting to $325 million in the quarter and $1.3 billion for the year [11] - As of December 31, 2024, deferred revenues stood at $2 billion, reflecting a 5% year-over-year increase [5] Guidance - For Q1 2025, Check Point projects revenues between $619 million and $649 million, with non-GAAP EPS expected in the range of $2.13-$2.23, while for the full year 2025, revenues are anticipated to be between $2.66 billion and $2.76 billion, with non-GAAP EPS projected at $9.60-$10.20 [12][13]