Check Point’s 1Q profit, revenue top estimates

Network security provider Check Point Software Technologies posted a better-than-expected rise in first-quarter net profit and revenue on growth in demand for mobile and cloud security and products to stop fast-evolving new threats.

Israel-based Check Point on Thursday forecast earnings per share (EPS) excluding one-time items of $1.17 to $1.25 in the second quarter on revenue of $440 million to $465m.

Analysts on average were estimating EPS of $1.23 on revenue of $453m., according to Thomson Reuters I/B/E/S.

The outlook is in line with the company’s full-year forecast, announced in January, calling for adjusted EPS of $5.05 to $5.25 on revenue of $1.85 billion to $1.9b., chief executive Gil Shwed told reporters.

“According to our internal metrics, we’re growing the fastest in the business,” he said.

Last week, Check Point launched Infinity, a single unified platform for network, cloud and mobile security, which it says not only identifies threats but also keeps them out.

Only about 1% of companies protect their mobile devices, and “companies haven’t necessarily felt a threat to the cloud,” Shwed said. “The good news is we’re seeing fast growth.”

Check Point, Israel’s biggest technology company by market value, earned $1.20 per diluted share excluding one-time items in the first quarter, up from $1.06 a year earlier. Revenue grew 8% to $435m. It was forecast to earn $1.19 a share on revenue of $433m. Check Point shares were up 0.9% at $105.2 in premarket trade on the Nasdaq stock exchange, after they closed at a record high of $105.36 on Tuesday.

“Our focus on cloud, mobility and threat prevention is paying off and has contributed nicely to results this quarter,” Shwed said.

Subscriptions for software rose 27% to $112m. in the quarter. This beat analysts’ average estimate of $109.9m., “highlighting the industry’s shift to a subscription-services model,” Oppenheimer analyst Shaul Eyal said.

“Overall, Check Point is kicking off 2017 with a solid set of first-quarter results,” he said. (Reuters)