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

Check Point Software Technologies Ltd.'s CHKP shares gained 7.4% on Thursday after the company reported better-than-expected fourth-quarter 2024 results. This IT security solutions provider reported non-GAAP earnings of $2.70 per share, which beat the Zacks Consensus Estimate of $2.66. The figure met the top end of management’s guidance of $2.60-$2.70. The bottom line increased 5% from the year-ago quarter’s level of $2.57.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Check Point Software's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met once, the average surprise being 1.6%.Check Point Software’s fourth-quarter revenues of $703.7 million surpassed the consensus mark of $698.2 million and came above the mid-point of the previously guided range of $675-$715 million. The top line increased 6% year over year, mainly driven by an 8% increase in the company’s core Quantum Force appliance business and strong growth in the Harmony Email and Infinity Platform revenues.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. QuoteCheck Point Fourth-Quarter DetailsSecurity subscription revenues were $292.2 million, which increased 9.9% year over year. Products and licenses revenues increased 7.8% year over year to $170.6 million. The Zacks Consensus Estimate for security subscription and products and licenses revenues was pegged at $293 million and $162 million.Total revenues from product and security subscriptions were $462.8 million, up 9.1% year over year. The consensus mark for the segment sales was pinned at $455 million.Software updates and maintenance revenues increased to $240.9 million from $239.4 million reported in the year-ago quarter. The Zacks Consensus Estimate for software updates and maintenance revenues was pegged at $243 million.As of Dec. 31, 2024, deferred revenues totaled $2 billion, up 5% year over year.Non-GAAP gross profit increased 6% year over year to $623 million while gross margin remained unchanged at 89%. Non-GAAP operating expenses soared 12%, primarily due to an 18% increase in selling & marketing expenses and a 6% rise in research & development costs, partially offset by a 3% decline in general & administrative expenses. As a percentage of revenues, operating expenses increased to 45% from 42.5% in the year-ago quarter.Non-GAAP operating income for the fourth quarter of 2024 totaled $306 million, down from $309 million reported in the year-ago quarter. Non-GAAP operating margin was 43.5%, which contracted 300 basis points due to higher operating expenses as a percentage of revenues.Check Point’s FY24 Performance in BriefFor 2024, Check Point Software reported non-GAAP earnings of $9.16 per share, beating the Zacks Consensus Estimate of $9.11 and came above the mid-point of management’s guidance range of $8.70-$9.30. The bottom line increased 9% from the year-ago quarter’s earnings of $8.42 per share.Check Point Software’s full-year revenues of $2.57 billion surpassed the consensus mark of $2.56 billion and came above the mid-point of the previously provided guidance range of $2.475-$2.625 billion. The top line increased 6% on a year-over-year basis.Check Point’s Balance Sheet & Other DetailsCheck Point Software exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.78 billion compared with the previous quarter’s $2.87 billion.The company generated cash worth $249 million from operational activities in the fourth quarter and $1.06 billion in the full year. It repurchased stocks worth $325 million in the reported quarter and $1.3 billion in full-year 2024.Check Point Initiates Q1 & FY25 GuidanceCheck Point Software initiated guidance for the first quarter and full year 2025. For the first quarter, it projects revenues between $619 million and $649 million and non-GAAP EPS in the range of $2.13-$2.23. The Zacks Consensus Estimate for the first quarter’s top and bottom lines is currently pegged at $632.1 million and $2.23, respectively.For the full year 2025, Check Point Software expects revenues of $2.66-$2.76 billion and non-GAAP EPS of $9.60-$10.20. The consensus mark for 2025 revenues and EPS is pinned at $2.70 billion and $9.90, respectively.CHKP’s Zacks Rank & Stocks to ConsiderCurrently, Check Point Software carries a Zacks Rank #4 (Sell).Gitlab GTLB, Planet Labs PBC PL and Fortinet FTNT are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. GTLB, PL and FTNT carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Gitlab shares have dropped 4% for the past year. The Zacks Consensus Estimate for GTLB’s full-year 2025 earnings is pegged at 63 cents per share, up 37% over the past 60 days, suggesting an increase of 215% from the year-ago quarter’s reported figure.Planet Labs PBC shares have surged 152% in the past year. The Zacks Consensus Estimate for PL’s full-year fiscal 2025 loss has contracted to 15 cents from the year-ago quarter’s loss of 50 cents.Fortinet shares have gained 52.2% for the past year. The Zacks Consensus Estimate for FTNT’s full-year 2025 earnings is pegged at $2.39 per share, up by a couple of pennies over the past 60 days, suggesting an increase of 6.5% from the year-ago quarter’s reported figure.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Planet Labs PBC (PL): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report GitLab Inc. 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