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Check Point Software Technologies Ltd. (CHKP)

- NASDAQ
  • Wed, May 27, 9:55 AM
    • "Current investments likely won't be productive for sometime, which means EPS growth will likely slow in FY15," writes Morgan Stanley, downgrading Check Point (NASDAQ:CHKP) to Underweight. "We continue to look for a high-single digit EPS CAGR through FY17."
    • MS thinks a firewall refresh cycle is peaking and believes Check Point has lost some share in the segment - next-gen firewall leader Palo Alto Networks has been seeing huge growth. It also thinks subscription billings growth softened in 2014, and that margins are declining.
    • Check Point had risen over 35% from last summer's lows going into today. Shares currently go for 21x 2015E EPS and 19x 2016E EPS.
    • Regarding Check Point's "current investments": Earlier this year, the company bought startups Lacoon and Hyperwise to strengthen its threat-prevention software/services offerings. It also launched a malware-protection software tool called Threat Extraction.
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  • Mon, Apr. 20, 9:22 AM
    • Along with its Q1 results, Check Point (NASDAQ:CHKP) has announced a partnership with threat-prevention hardware/software/services leader FireEye (NASDAQ:FEYE) to "share threat intelligence to protect customers from modern advanced attacks." The deal covers intelligence-sharing for Check Point's ThreatCloud managed security service and Next Generation Threat Prevention appliances, and FireEye's NX Series threat-prevention hardware.
    • The companies assert they'll offer "the industry's largest library of threat intelligence currently available," and update information in near-real time. FireEye gains access to Check Point's huge installed base; Check Point gets to partner with a firm seen by many as an attack-prevention tech leader, and which has often been hired to probe major cyberattacks.
    • The deal comes two weeks after Cisco unveiled a malware-protection solution (offered either as an on-premise appliance or a cloud service) that pairs malware analysis with threat intelligence. In late March, next-gen firewall leader Palo Alto Networks (NYSE:PANW) launched a cyber threat intelligence service called AutoFocus.
    • Separately, Check Point has guided on its Q1 CC for Q2 revenue of $380M-$400M and EPS of $0.90-$0.99, in-line with a consensus of $392.4M and $0.94. With the company depending heavily on European sales, forex has been a major headwind.
    • CHKP +1.1% premarket to $82.58. FEYE +1.4% to $41.40.
    • Check Point's Q1 results, PR
    • Two months ago: Check Point buys threat-prevention startup Hyperwise
    • Update (3:10PM ET): Check Point is now up 5.2% amid a tech rally. FireEye is up 3.9%.
    | Comment!
  • Mon, Apr. 20, 5:34 AM
    • Check Point Software Technologies (NASDAQ:CHKP): Q1 EPS of $0.95 beats by $0.04.
    • Revenue of $372.58M (+8.9% Y/Y) beats by $2.23M.
    • Press Release
    | Comment!
  • Sun, Apr. 19, 5:30 PM
  • Tue, Apr. 14, 6:22 AM
    • Cyberattacks and cybercrime against large companies – those with over 2,500 employees - rose 40% globally in 2014, according to Symantec's annual Internet Security Threat study published Tuesday.
    • Attacks on small- and medium-sized companies, which accounted for 60% of targeted attacks, increased 26% and 30%, respectively.
    • Despite the large hacks at Home Depot, JPMorgan, Staples and Sony, Symantec says the mining industry, which includes oil & gas, was the most-targeted sector last year.
    • Related tickers: FEYE, IMPV, FTNT, PFPT, HACK, CYBR, VDSI, CHKP, PANW, CUDA
    | 6 Comments
  • Sat, Apr. 4, 3:12 PM
    • Lacoon Mobile Security provides threat detection, risk mitigation, and vulnenrability assessment software and services for an enterprise's iOS/Android devices. The startup has an R&D team in Tel Aviv, and a sales team in San Francisco.
    • Check Point (NASDAQ:CHKP) has bought Lacoon for an undisclosed sum, while asserting the company provides "the most comprehensive [mobile security] solution for iOS and Android," and "the best advanced threat catch-rate for enterprise-grade mobile security platforms." Among other things, Laccon's technology is declared to "[detect] device, application and in-network threats that others may have missed and [quantify] the risks and vulnerabilities that BYOD exposes to the enterprise."
    • Check Point plans to integrate Lacoon's offerings with its Capsule mobile security platform. President Amnon Bar-Lev: "I think the combination of Lacoon together with us scanning all of your networks, it's a very robust and complete security solution."
    • The purchase follows Check Point's February acquisition of threat prevention tech developer Hyperwise for a reported $80M. Earlier this week, Check Point rival/next-gen firewall leader Palo Alto Networks announced plans to offer a mobile security solution that combines Palo Alto's firewalls and security services with VMware's AirWatch enterprise mobility management (EMM) platform.
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  • Tue, Mar. 10, 2:55 PM
    • Security tech plays, several of which were huge gainers in February, have been hard hit (HACK -2.6%) amid a market selloff. Major decliners include FireEye (FEYE -4%), CyberArk (CYBR -6.6%), Proofpoint (PFPT -4.7%), and Vasco (VDSI -5.5%). Imperva is off sharply after announcing a 3M-share offering.
    • FBN Shebly Seyrafi reiterated his bullish stance on the group today, forecasting security IT spend will grow 14% this year (up from 2014's 11%). Palo Alto Networks (PANW -0.5%) and Fortinet (FTNT -2.4%) are his favorites due to positive checks, but he also likes other names, mentioning FireEye and Check Point (CHKP -0.2%) in particular. Palo Alto and Check Point are seeing only modest losses.
    • Earlier today, Check Point launched Threat Extraction, a malware-protection tool that proactively extracts and reconstructs documents traveling over a network with known safe elements (so as to remove the threat of malware). The product launch, which furthers Check Point's efforts to grow its software exposure, follows the company's purchase of threat-prevention software startup Hyperwise.
    | 7 Comments
  • Wed, Feb. 18, 1:13 PM
    • Check Point (CHKP +0.5%) has acquired Hyperwise, a stealth-mode Israeli startup declared to have "developed a unique and cutting-edge CPU-level threat prevention engine that eliminates threats at the point of pre-infection." Calcalist reports the purchase price is $80M.
    • Check Point asserts Hyperwise's software "provides a higher catch rate of threats and provides organizations an unmatched level of protection against attackers," in part by blocking malware before it become active on a network, and that its CPU-level blocking can stop previously undetected attacks. It will be added to Check Point's Threat Emulation solution, which runs suspect code in a virtual sandbox to determine if it's a malicious.
    • FireEye (NASDAQ:FEYE), whose virtual sandbox solution has often been praised, is arguably the leader in the threat-prevention space. Next-gen firewall vendor Check Point rival Palo Alto Networks (NYSE:PANW) is also going after the market, aided by technology obtained from startup Cyvera. Corporate interest has been growing rapidly following a string of well-publicized hacks.
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  • Thu, Jan. 29, 11:16 AM
    • Check Point (NASDAQ:CHKP) has guided on its Q4 CC (webcast) for 2015 revenue of $1.6B-$1.65B and EPS of $3.90-$4.02. The former is above a $1.59B consensus in spite of major forex pressures - Check Points depends heavily on European sales. The latter is below a $4.07 consensus due to Check Point's plans to spend aggressively to improve its positioning in a very competitive security appliance/software market.
    • The company has also announced it's upping its total buyback authorization by $500M to $1.5B, and its quarterly authorization by $50M to $250M. Check Point spent $195M on buybacks in Q4, and $765M over the whole of 2014.
    • With a strong IT security spending environment providing a boost, product/license revenue (drives future maintenance/update revenue) rose 6% Y/Y in Q4 to$162M, and software blade subscription revenue 20% to $72.3M. Update/maintenance revenue grew 7% to $186.2M.
    • Operating expenses rose 11% to $191.4M (compares with 9% revenue growth), and the deferred revenue balance grew a healthy 17% to $784M.
    • Q4 results, PR
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  • Thu, Jan. 29, 5:17 AM
    • Check Point Software Technologies (NASDAQ:CHKP): Q4 EPS of $1.07 beats by $0.02.
    • Revenue of $421M (+8.8% Y/Y) beats by $4.87M.
    • Press Release
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  • Wed, Jan. 28, 5:30 PM
  • Thu, Jan. 22, 12:11 PM
    • JPMorgan has downgraded Check Point (CHKP -1.5%) to Neutral ahead of its Q4 report. However, the firm's target has been belatedly hiked by $5 to $83.
    • Check Point is up 18% since beating Q3 estimates and providing healthy Q4 guidance on Oct. 23. Deutsche upgraded last month.
    | 1 Comment
  • Dec. 17, 2014, 1:42 PM
    • "Our broader sector call is that enterprise spending on security IT will again be very strong in 2015, if not stronger than in 2014. Throughout 2014, we flagged PANW, FTNT and PFPT as our top security picks and we’re now adding CHKP to this short-list," says Deutsche's Karl Keirstead. He's upgrading the firewall/security software vendor to Buy, and hiking his target by $20 to $90.
    • Keirstead considers Check Points's (CHKP +1.9%) multiples (18x and 11.7x 2015E EPS and free cash flow, respectively) attractive given its security exposure and accelerating growth (potentially 11% Y/Y in Q4 vs. 3%-4% for much of 2013).
    • With the aforementioned peers having significantly outperformed Check Point this year, Keirstead thinks "investors are likely to look more aggressively at CHKP shares as a cheaper way to play the security theme with more limited downside risk."
    • Shares are $2 away from a high of $78.78. They rallied in October in response to a Q3 beat and healthy Q4 guidance. A weak euro and Palo Alto Networks' firewall share gains have been seen as potential headwinds.
    | Comment!
  • Oct. 23, 2014, 12:03 PM
    • Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
    • Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
    • Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
    • Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
    | 1 Comment
  • Oct. 23, 2014, 5:32 AM
    • Check Point Software Technologies (NASDAQ:CHKP): Q3 EPS of $0.93 beats by $0.02.
    • Revenue of $370M (+7.6% Y/Y) beats by $2.9M.
    • Press Release
    | Comment!
  • Oct. 22, 2014, 5:30 PM
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Company Description
Check Point Software Technologies Ltd develops, and markets software and combined hardware and software products and services for information technology security.