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Thu, Jan. 28, 3:52 PM
- Check Point (CHKP +2.1%) is up moderately after beating Q4 estimates. On its earnings call, the firewall/security software provider guided for Q1 revenue of $395M-$410M and EPS of $0.99-$1.05 vs. a consensus of $404.8M and $1.04.
- 2016 EPS guidance is at $4.45-$4.60, in-line with a $4.55 consensus. With Check Point having strong European exposure, forex remains a major headwind.
- Buyback continue at an aggressive pace: $249M was spent in Q4 to repurchase 3M shares, and $986M over the whole of 2015 to buy back 12M shares. Healthy software subscription growth led the deferred revenue balance to rise 16% Y/Y in Q4 (outpacing revenue growth of 9%) to $906M. Product/license revenue rose 7% Y/Y to $173.9M; software blade subscription revenue rose 22% to $88M.
- Check Point's Q4 results, earnings release
Thu, Jan. 28, 5:30 AM
Wed, Jan. 27, 5:30 PM
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Wed, Jan. 13, 9:33 AM
- Israel's TheMarker reports firewall/security software vendor Check Point (CHKP +2.1%) is in preliminary talks to buy privileged account security software leader CyberArk (NASDAQ:CYBR). No word on a potential deal price.
- Oppenheimer's Shaul Eyal considers the odds of a deal low. given Check Point has historically opted for smaller/cheaper purchases. "We note the two companies have been already cooperating and partnering in recent years on various productsb both companies have considerable R&D centers in Israel. While CHKP carries $3.6B of cash on its balance sheet and it appears that financing such a hypothetical transaction is no hurdle, it would certainly mark a deviation from its recent years' strategy of acquiring tuck-in technologies (Lacoon and Hyperwise in 2015 for a combined sub-$200M)."
- CyberArk has surged above $45 on the report. Following the jump, CyberArk has a $1.48B market cap to Check Point's $14.5B.
Wed, Jan. 6, 1:46 PM
- Barclays' Raimo Lenschow has downgraded firewall/security software firm Check Point (CHKP -1.9%), cloud talent management software firm Cornerstone OnDemand (CSOD -2.7%), and data warehousing hardware/software provider Teradata (TDC -3.8%) to Underweight. Cloud HR/financials software vendor Workday (WDAY -3.6%) and e-commerce software/services provider Demandware (DWRE -2.9%) have been cut to Equal Weight.
- Cloud HR software firm Paycom (PAYC -1%), on the other hand, has been upgraded to Overweight on a belief consensus estimates are too low. Meanwhile, BofA/Merrill has launched coverage on Demandware at Buy.
- Regarding Check Point, Lenschow says he prefer security tech firms that are gaining share - his top three ideas are Palo Alto Networks, Imprivata, and Rapid7. He sees security IT spend rising 7% in both 2016 and 2017, a rate on par with 2015's.
- Regarding Cornerstone, Lenschow is worried about slowing top-line growth, a lack of profits, and growing competition. Regarding Workday, he's concerned about competition from SAP/Oracle, a high valuation, and the relatively limited impact of its financials offerings on sales growth.
- The downgraded names are underperforming amid a 1.1% Nasdaq drop.
Mon, Jan. 4, 7:59 AM
- Several tech companies large and small were downgraded today as markets globally saw a steep sell-off
- Among those hit, Amazon (NASDAQ:AMZN), CheckPoint Software (NASDAQ:CHKP), Dreamworks Animation (NASDAQ:DWA), GSV Capital (NASDAQ:GSVC), iRobot (NASDAQ:IRBT), Netflix (NASDAQ:NFLX), Pandora (NYSE:P), Paypal (NASDAQ:PYPL), Telephone & Data (NYSE:TDS), U.S. Cellular (NYSE:USM)
- Many of the downgrades are valuation related. Monness Crespi & Hardt cite "less degrees of upside" this year relative to last year, leading to potential price-declines in the short term. Meanwhile, Robert W. Baird lowers its price target on NFLX to $115, citing weaker U.S. subscriber results for the second quarter in a row, with an earnings beat already priced in to the stock.
- See also SPDR Select Sector Technology Fund (NYSEARCA:XLK), falling -2.40% pre-market.
Dec. 30, 2015, 6:22 PM
- "On the heels of another strong year for cybersecurity players, our recent field checks heading into 2016 suggest 'robust' deal momentum as enterprises and governments across the board upgrade to next-generation security platforms/software," says FBR's Dan Ives, reiterating his bullish stance on security tech upstarts.
- Ives: "Based on our conversations with channel partners/customers over the last few weeks, closure rates look to be trending higher year over year, with seven-figure deals markedly up in the pipeline. This speaks to the massive firewall refresh that is underway, with hot areas of security (next-generation firewall, e-mail security, mobile/cloud) as the main beneficiaries."
- He expects next-gen firewall leader Palo Alto Networks (NYSE:PANW) to be a major beneficiary. Others expected to benefit include firewall/security software vendor Check Point (NASDAQ:CHKP), privileged account security software leader CyberArk (NASDAQ:CYBR), unified threat appliance leader Fortinet (NASDAQ:FTNT), e-mail/compliance security software firm Proofpoint (NASDAQ:PFPT), and Web app firewall and data security software firm Imperva (NYSE:IMPV).
- Ives is less bullish on malware and endpoint-protection hardware and software provider FireEye (NASDAQ:FEYE), citing execution and product-related headwinds. His note comes three weeks after Citi reported a CIO survey pointed to strong enterprise security spend. FireEye (upgraded), Palo Alto, Splunk, and Imperva were favorably mentioned.
- ETF: HACK
Oct. 26, 2015, 12:54 PM
- In addition to beating Q3 estimates (moreso on EPS than revenue), Check Point (CHKP +0.3%) guided on its earnings call for Q4 EPS of $1.10-$1.18 vs. a $1.11 consensus. Revenue guidance is more cautious: $440M-$470M vs. a $456.5M consensus.
- Buybacks continue to lift the firewall/security software vendor's EPS: Check Point spent $250M in Q3 to repurchase 3.1M shares. $245M was spent on buybacks in Q2.
- Product/license revenue rose 7% Y/Y to $135.2M, software blade subscription revenue 18% to $79.6M, and software update/maintenance revenue 7% to $189M. Subscription growth helped the deferred revenue balance rise 17% to $772M.
- GAAP operating expenses rose 15% Y/Y to $199.2M. Check Point ended Q3 with $3.6B in cash/investments, and no debt.
- Q3 results, PR
Oct. 26, 2015, 6:02 AM
- Check Point Software Technologies (NASDAQ:CHKP): Q3 EPS of $1.04 beats by $0.06.
- Revenue of $403.86M (+9.0% Y/Y) beats by $0.9M.
Oct. 25, 2015, 5:30 PM
Sep. 1, 2015, 4:15 PM
- Stating it wishes to separate the chairman and CEO positions, Check Point (NASDAQ:CHKP) has named Marius Nacht, a co-founder and 22-year board vet, its non-executive chairman.
- Fellow co-founder, Gil Shwed, who has served as both chairman and CEO since 1998, will retain the latter role.
Jul. 22, 2015, 9:31 AM
- Check Point (NASDAQ:CHKP) is rallying after beating Q2 estimates and (thanks to software subscription growth) reporting an 18% Y/Y increase in its deferred revenue balance to $780M (above revenue growth of 9%).
- The firewall/security software vendor once more guided in-line on its CC (webcast): Q3 revenue of $392M-$410M and EPS of $0.92-$1.02 vs. a consensus of $403.1M and $0.97. A weak euro remains a headwind.
- Key numbers: Product/license revenue +6% Y/Y to $132.3M. Software blade subscription revenue +20% to $76.6M. Software update/maintenance revenue +7% to $186.4M. GAAP operating expenses +14% to $196.3M - sales/marketing spend totaled $92.2M, G&A $22.3M, and R&D $36.2M.
- $245M was spent on buybacks. Check Point ended Q2 with $3.61B in cash/investments, and no debt.
Jul. 22, 2015, 5:47 AM
- Check Point Software Technologies (NASDAQ:CHKP): Q2 EPS of $0.99 beats by $0.04.
- Revenue of $395M (+8.9% Y/Y) beats by $2.42M.
Jul. 21, 2015, 5:30 PM
Jul. 9, 2015, 2:26 PM
- Security tech plays are outperforming amid a 0.4% gain for the Nasdaq. The rally comes a day after the NYSE suffered a lengthy outage, United Airlines grounded flights, and the WSJ's site briefly went down.
- All three incidents have been blamed on tech issues rather than attacks/breaches, but questions linger. FBI director James Comey: "We do not see any indication of a cyber breach or cyber attack ... But again, in my business, you don't love coincidences." Ex-White House cybersecurity advisor Richard Clarke: "Right now, anybody who says they know for sure what happened before the forensic work has been done is kidding themselves."
- Also: In a bit of good PR/convenient timing for the group, representatives from the PureFunds Cyber Security ETF (HACK +1.6%) rang the NYSE's opening bell today. The NYSE says the event was booked months in advance.
- Standouts include CyberArk (CYBR +4%), FireEye (FEYE +2.7%), KEYW Holding (KEYW +5%), Fortinet (FTNT +2.4%), Check Point (CHKP +2.6%), Imperva (IMPV +2.9%), Zix (ZIXI +2.8%), Proofpoint (PFPT +2.7%), and Vasco (VDSI +2.5%). Barracuda (CUDA +2%) reports after the bell.
Jun. 24, 2015, 11:54 AM
- Baird has downgraded Fortinet in response to a healthy 2015 run-up, and many security tech peers have joined the company in seeing profit-taking (HACK -1.3%). The Nasdaq is down just 0.1%.
- Decliners include FireEye (FEYE -2.3%), Qualys (QLYS -6.7%), KEYW (KEYW -5.1%), Check Point (CHKP -1.9%), Barracuda (CUDA -2.5%), Vasco (VDSI -2.5%), and Proofpoint (PFPT -1.8%). UBS downgraded FireEye to Neutral two days ago while citing valuation, and also cut Symantec to Sell. RBC has hiked its Qualys target by $6 to $44 today, while reiterating a Sector Perform.
- The selloff comes as an Office of Personnel Management (OPM) official states up to 18M Social Security numbers may have been stolen in a recent breach. FireEye recently ID'd a Chinese group it believes was responsible for the hack.
- Meanwhile, the WSJ has published a column about Check Point's efforts to expand beyond its core firewall market, and thereby keep the likes of Fortinet and Palo Alto Networks at bay. Gartner estimates Check Point had a 22.7% 2014 firewall share, well above #2 Cisco's (NASDAQ:CSCO) 15.9% but down from a 2013 share of 24%.
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