Earnings Preview: Check Point Software Reports Results Tuesday

| About: Check Point (CHKP)

Check Point Software Technologie (NASDAQ:CHKP) is anticipated to report earnings before the opening bell on January 17, 2012.

Check Point Software Technologies Ltd. develops, markets, and supports a range of software, and combined hardware and software products and services, for information technology security applications worldwide. The company was founded in 1993 and is headquartered in Tel Aviv, Israel. CHKP trades an average of 1.7 million shares per day.

52 Week High: $61.60
52 Week Low: $44.32
Book Value: $14.26
Float Short: 1.85%

Analysts are expecting an improvement of $0.10 in earnings per share compared to last quarter's results of $0.72. The estimated mean earnings are $0.82 per share.

The current trailing twelve months (NYSE:TTM) P/E ratio is 20.1. The forward P/E ratio is 17.5. the stock is trading near the low of the multi-month trading range. While it is trading below the 200-day moving average, and strong upside surprises would likely indicate a target of $55 could be met soon. The sell-off of all the decent moves higher is disappointing, though.

The company has rising revenue year-over-year of $1.10 billion for 2010 vs. $924.42 million for 2009. The bottom line has rising earnings year-over-year of $452.83 million for 2010 vs. $357.52 million for 2009.The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $535.01 million for 2010 vs. $415.02 million for 2009.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for CHKP

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 307.05 M $ 308.31 M $ 1.26 M 0.41%
Jun-11 $ 295.99 M $ 300.64 M $ 4.65 M 1.57%
Mar-11 $ 276.71 M $ 281.27 M $ 4.56 M 1.65%
Dec-10 $ 305.76 M $ 318.51 M $ 12.75 M 4.17%
Sep-10 $ 262.88 M $ 273.19 M $ 10.31 M 3.92%

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results CHKP Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for CHKP:

paid2trade.com short interest tool. The total short interest number of shares for CHKP

The number of days to cover short interest based on average daily trading volume for CHKP:

paid2trade.com number of days to cover short interest based on average daily trading volume for CHKP

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Security Software & Services, Earnings
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