Check Point Software Q3 Earnings Match Estimates, Revenues Miss

Check Point Software Technologies CHKP reported third-quarter 2024 results, wherein the  bottom line match the Zacks Consensus Estimate while top-line missed estimates by 0.5%.This IT security solutions provider reported non-GAAP earnings of $2.25 per share. The bottom line increased 9% from the year-ago quarter’s earnings of $2.07 per share.Check Point’s quarterly revenues increased 7% year over year to $635 million.  This upside was driven by double-digit growth in Harmony Email and Infinity Platform revenues.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.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. QuoteQuarterly Details of CHKPSecurity subscription revenues were $277 million, which increased 12% year over year, driven by the acquisition of Cyberint. This expanded the product offering into the Security Operation Center market. A strong demand for the Harmony product family also aided. Our model estimate for security subscription revenues was pegged at $281 million, up 16.5% year over year.Products and licenses revenues increased 4.2% year over year to $118.9 million. Our model estimate for products and licenses revenues was pegged at $116 million, which remained unchanged year over year. Total revenues from product and security subscriptions were $635.1 million, up 6.5% year over year.Software updates and maintenance revenues increased to $239.3 million from $233.8 million reported in the year-ago quarter. Our model estimate for software updates and maintenance revenues was pegged at $238 million.As of Sept. 30, 2024, deferred revenues were $1.745 billion, up 2% year over year.Non-GAAP operating income for the third quarter of 2024 totaled $274 million, up from $269 million reported in the year-ago quarter. Non-GAAP operating margin was 43%, which declined 2% year over year.Check Point’s Balance Sheet & Other DetailsCheck Point exited the third quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.87 billion compared with the previous quarter’s $2.98 billion.The company generated cash worth $249 million from operational activities in the third quarter of 2024. CHKP acquired Cyberint for $186 million net cash consideration in the third quarter of 2024, the cost of which was insignificant. It repurchased approximately 1.79 million shares for about $325 million in the reported quarter.Zacks Rank & Stocks to ConsiderCurrently, Check Point carries a Zacks Rank #2 (Buy).Monday.com MNDY, Palo Alto Networks PANW and BlackLine BL are some better-ranked stocks that investors can consider in the broader sector. MNDY, PANW and BL each sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of MNDY have gained 61% year to date. The company is set to report third-quarter 2024 results on Nov. 11.Shares of PANW have climbed 23.9% year to date. It is slated to report first-quarter fiscal 2025 results on Nov. 20.Shares of BL have lost 8.2% year to date. The company is set to report third-quarter 2024 results on Nov. 7. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report BlackLine (BL): Free Stock Analysis Report monday.com Ltd. (MNDY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks