Wed, Jan. 28, 5:30 PM
- ABT, AIT, ALLY, ALV, ALXN, APD, BABA, BAX, BC, BEAV, BMS, BX, CAH, CAM, CELG, CHKP, CL, CLFD, CMS, COH, COP, CRR, CSH, DGX, DHX, DOW, DST, EMC, EPD, F, GLOP, HAE, HAR, HGG, HOG, HP, HSY, HUB.B, ITG, IVZ, JBLU, KELYA, KEM, KMT, LLL, LRN, LSTR, MD, MJN, MMYT, MTH, NDAQ, NOC, NOK, NYCB, OSTK, OXY, PENN, PHM, POT, PSX, PSXP, RCI, RCL, RDS.A, RGLD, RGS, RTN, RYL, SHW, SILC, SWK, SXC, TCB, TDY, TKR, TMO, TWC, UBSI, VIAB, VLO, VLY, VRTS, WCC, WILN, WRLD, XEL, ZMH
Thu, Jan. 22, 12:11 PM| Thu, Jan. 22, 12:11 PM | 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.
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.
Oct. 23, 2014, 5:32 AM
Oct. 22, 2014, 5:30 PM
- AAL, AB, ACAT, AEP, ALK, ALV, ALXN, ARG, ASPS, AVT, BBW, BC, BCC, BHE, BKU, BMS, CAB, CAM, CAT, CCE, CELG, CFX, CHKP, CLI, CMCSA, CMS, CRI, CRS, CS, CSH, CVE, CWEI, DAN, DGX, DLX, DNKN, DO, DPS, EQM, EQT, FAF, GM, GMT, GPI, GRUB, HERO, HUB.B, IMAX, IVC, JAH, JAKK, JBLU, JNS, KKR, LAZ, LLY, LO, LSTR, LTM, LUV, MDP, MHO, MINI, MJN, MMM, MTRN, NLSN, NOK, NUE, NWE, ORI, OSIS, OSTK, OXY, PCP, PENN, PHM, PLD, POT, PRLB, PTEN, QSII, RCI, RCL, RS, RTN, RYL, SIAL, SILC, SJR, SLAB, SONS, SQNS, STC, TDY, TROW, UA, UAL, UFS, UNP, USG, UTEK, WCC, WSO, YNDX, ZMH
Jul. 24, 2014, 1:57 PM
- Fortinet (FTNT +6.7%) beat Q2 estimates with the help of 33% Y/Y billings growth (exceeded rev. growth of 25%) and a 95% Y/Y increase in $500K+ deals.
- The company guided in its CC slides (.pdf) for Q3 revenue of $182M-$185M and EPS of $0.11 vs. a consensus of $177.3M and $0.13. Full-year guidance is for revenue of $735M-$740M and EPS of $0.47-$0.48 vs. a consensus of $714M and $0.50. Billings are expected to grow ~22% to $835M-$840M.
- On its CC (transcript), the UTM hardware leader suggested its light EPS guidance is due to a heavy investment pace, including aggressive sales hiring. It also mentioned Americas sales were up 40% Y/Y, fueled by a 73% increase for U.S. enterprise.
- Meanwhile, Vasco Data (VDSI +16.9%) trounced Q2 estimates and hiked its guidance for 2014 revenue from traditional businesses to $175M-$180M from $168M-$172M. The company notes adoption of new productions leveraging its Cronto visual authentication tech (acquired last year) has been strong.
- FireEye (FEYE +3%), Palo Alto Networks (PANW +2.8%), Proofpoint (PFPT +3.6%), and Check Point (CHKP +1.7%) are trading higher. Proofpoint reports after the bell; Check Point provided a Q2 beat and healthy top-line guidance yesterday.
- On the other hand, Barracuda (CUDA -5.9%) is selling off. JPMorgan attributes the decline to Fortinet's CC remarks about rapidly growing sales to mid-sized businesses - Barracuda depends heavily on them - with the help of new resellers. The firm argues the concerns are overblown, particularly since Fortinet is more focused on larger mid-sized businesses.
Jul. 23, 2014, 2:24 PM
- Check Point (CHKP +2.1%) guided on its CC for Q3 revenue of $365M-$375M and EPS of $0.88-$0.92 vs. a consensus of $365.9M and $0.90.
- Q2 results beat estimates with the help of a 21% Y/Y increase in software blade subscription revenue to $63.7M. Like several enterprise security peers, Check Point has been trying to grow its reliance on subscription-based software/services revenue streams. Subscription growth also fueled a 14% Y/Y increase in Check Point's deferred revenue balance to $660M.
- Standard product/license revenue grew 4% to $124.3M, and software update/maintenance revenue grew 3% to $174.5M. Opex rose 10% to $172.7M.
- $194M was spent on buybacks. With Check Point's cash balance at $3.6B at quarter's end, the company says it's looking for M&A targets.
- FBR predicts "brighter days are on the horizon for 2H14/2015 as consistent license growth is now here to stay," thanks to a "next-generation firewall refresh" that's still in its early stages. Palo Alto Networks (49% April quarter revenue growth) remains the next-gen firewall market's leader.
Jul. 23, 2014, 5:34 AM
Jul. 22, 2014, 5:30 PM
Apr. 29, 2014, 3:55 PM
- Though Check Point's (CHKP -4.3%) Q1 results were roughly in-line, the firewall vendor guided on its CC (transcript) for Q2 revenue of $340M-$375 ($357.5M midpoint) and EPS of $0.82-$0.90, slightly unfavorable to a consensus of $361.1M and $0.88.
- Check Point says it's seeing healthy demand in North America (20% Y/Y product sales growth in Q1), but also "saw some softness in international markets, especially Asia." The company chalks this up to both macro conditions and "a slow start to the year" following a strong Q4.
- Check Point's deferred revenue balance rose 13% Y/Y in Q1 to $660M. Overall product and software subscription revenue rose 10% Y/Y, better than total revenue growth of 6%. $183M was spent on buybacks.
- The company faces tough competition from next-gen firewall leader Palo Alto Networks (46% Jan. quarter revenue growth) and other upstarts, but has been faring better than traditional firewall rivals Cisco and Juniper.
- Q1 results, PR
Apr. 29, 2014, 5:42 AM
Apr. 28, 2014, 5:30 PM
- ABB, AGCO, AIXG, ALR, AMG, ARRY, AXE, BMY, BP, BSX, CARB, CCJ, CHKP, CIT, CMI, CNX, COH, CPLA, CRY, DBD, DDD, DORM, ESV, ETN, FDP, FLWS, FRX, GAS, GEO, GLT, GT, GTLS, HCA, HCBK, HRS, HUN, HW, IPGP, IRWD, KLIC, LG, LKQ, LRN, LYB, MGI, MGLN, MGM, MHFI, MLM, MRK, NMM, NOK, OSK, PCAR, PES, PH, POR, RESI, ROK, RTRX, RYN, S, SAVE, SCOR, SLAB, ST, TRW, UBSI, UDR, UTHR, VAC, VLO, WAT, WDR, WRLD, WWW, XYL.
Apr. 14, 2014, 7:07 PM
- An April Barclays survey of 100 U.S. and European CIOs found 46% expecting their company's IT spending to rise in 1H14, 20% expecting it to drop, and 34% expecting no change. Those figures compare with September survey levels of 43%, 27%, and 30%.
- Moreover, IT spending growth is seen accelerating in 2H in both the U.S. and Europe. Barclays thinks larger budgets, macro stabilization, and a need for equipment refreshes (due to high utilization rates) could be helping out.
- At the same time, the firm cautions the spending growth is uneven: Software, networking, security, and cloud services demand is healthy, but servers, storage, and IT services remain soft. Interest in the concept of a software-defined data center is gaining traction, but big data (hyped considerably last year) is losing it for now.
- Gartner has forecast IT spending will rise 3.2% this year to $3.77T after growing just 0.4% in 2013. Enterprise software (+6.9% to $320B) is expected to lead the way.
- Barclays thinks its survey bodes well for H-P (HPQ), Juniper (JNPR), F5 (FFIV), Aruba (ARUN), Ingram Micro (IM), and CDW, each of which is rated Overweight.
- Others that might take heart in the survey results: CSCO, ORCL, SAP, CA, SWI, VMW, CHKP, BRCD, ARW, AVT
Jan. 28, 2014, 5:58 AM
Jan. 28, 2014, 12:05 AM
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