Check Point Software Earnings: Profit Satisfies Investors

Check Point Software Technologies Ltd. (NASDAQ:CHKP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Investors appear to be happy with the profit side of the equations as shares are up 1.36%.

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Check Point Software Technologies Ltd. Earnings Cheat Sheet

Results: Net income increased 39.48% to $222.9 million (91 cents per diluted share) in the quarter versus a net gain of $159.81 million in the year-earlier quarter.

Revenue: Rose 3.32% to $368.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Check Point Software Technologies Ltd. reported adjusted net income of 91 cents per share. By that measure, the company beat the mean analyst estimate of $0.88. It missed the average revenue estimate of $373.74 million.

Quoting Management: “Throughout 2012, customers continued to adopt the Software Blades Architecture and further consolidated their security infrastructure with our new appliance portfolio. Revenues from software blades had a significant contribution to our growth with over a 50% increase this year…

…Overall financial results were good with non-GAAP EPS growth of 11 percent for the year. Cash flow from operations reached $816 million dollars representing 14 percent growth for the year. In the fourth quarter, cash flow from operations was $202 million dollars representing 17 percent growth,” said Gil Shwed, founder, chairman and chief executive officer at Check Point Software Technologies.

Key Stats:

Revenue increased 10.9% from $332.36 million in the previous quarter. Net income increased 46.25% from $152.41 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.8 and has not changed. For the current year, the average estimate is a profit of $3.17, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)