Check Point Software Technologies Ltd.NASDAQ
Check Point Software - Solid Performance, Familiar Worries
Stephen Simpson, CFA
Stephen Simpson, CFA
Check Point Doesn't Need To Feel Insecure
Stephen Simpson, CFA
Stephen Simpson, CFA
Fri, Oct. 21, 1:50 PM
- See: Internet attack takes many sites offline for hours
- Up today – FireEye (FEYE +1.9%), Palo Alto Networks (PANW +0.6%), Fortinet (FTNT +1.5%), Cyberark Software (CYBR +3.9%), Check Point Software Technologies (CHKP +0.8%), Proofpoint (PFPT +10.5%) [see earnings]
- Despite these gains, on the last-month term FireEye's lower by 9%, Palo Alto Networks' unmoved, Fortinet's down 11%, Cyberark Software's down 6%, Check Point Software Technologies' up 2% and Proofpoint's up 1.7%. Names down today in the space include Imperva (IMPV -2.6%), Symantec (SYMC -0.3%) and Barracuda Networks (CUDA), respectively lower by 12%, 4% and 1% on the month.
- CDN providers – Akamai Technologies (AKAM +1.5%), Limelight Networks (LLNW -0.5%), Level 3 Communications (LVLT -0.6%)
- Related – (NYSEARCA:HACK)
Tue, Oct. 11, 7:33 PM
- Earlier: Fortinet pre-announces Q3 results below prior guidance, -14% after hours
- Presently – FireEye (NASDAQ:FEYE) -3%, Palo Alto Networks (NYSE:PANW) -4%, CyberArk Software (NASDAQ:CYBR) -2.25%, Check Point Software Technologies (NASDAQ:CHKP) -2%, Proofpoint (NASDAQ:PFPT) -4.25%.
- Barracuda Networks, however, is up 6.6% on earnings while Symantec, Imperva and Secureworks remain presently unchanged.
Tue, Jul. 26, 5:33 AM
Mon, Jul. 25, 5:30 PM
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Thu, Jun. 16, 1:42 PM
- "We picked up more data points suggesting that enterprise security spending growth is slowing, with the tone incrementally worse in the banking vertical. CHKP derives ~30% of its revs mix from the financial services vertical," writes Deutsche after attending a Gartner security conference. The firm has downgraded Check Point (CHKP -3.2%) to Hold, and cut its target by $5 to $90 (still $8 above current levels).
- The firm qualifies its downgrade by noting Check Point has a loyal customer base, and that its valuation provides downside protection. Shares go for 16x a 2017 EPS consensus of $4.99.
Wed, Apr. 20, 9:15 AM
Wed, Apr. 20, 5:29 AM
- Check Point Software Technologies (NASDAQ:CHKP): Q1 EPS of $1.06 beats by $0.03.
- Revenue of $404M (+8.4% Y/Y) in-line.
Tue, Apr. 19, 5:30 PM
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
- Check Point Software Technologies (NASDAQ:CHKP): Q4 EPS of $1.20 beats by $0.05.
- Revenue of $458.07M (+8.9% Y/Y) beats by $0.99M.
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.
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.