Check Point beats analysts with strong Q2 results

Gil Shwed

The Israeli cybersecurity company's share price is rising sharply on Wall Street after reporting higher revenue and profit despite the Covid-19 crisis.

Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has reported strong results for the second quarter of 2020, significantly beating the analysts' estimates in both revenue and profits.

In an irregular move, Check Point itself had provided no guidance because of the uncertainties caused by the Covid-19 pandemic, but the analysts had predicted second quarter revenue of $488 million (similar to the first quarter) and non-GAAP net profit earnings per share of $1.44. In the event Check Point reported second quarter revenue of $506 million, up 3.6% from the corresponding quarter of 2019, and earnings per share of $1.58, up from $1.38 in the second quarter of 2019.

GAAP net profit was $196 million, up from $186 million in the second quarter of 2019. Non-GAAP net profit was $225 million, up 6.4% from the second quarter of 2019.

Check Point generated cash flow of $252 million in the second quarter of 2020 and ended the second quarter with $4 billion in cash in its coffers.

Check Point founder and CEO Gil Shwed said, "We delivered solid second quarter results driven by strong sales execution despite the rising impact of the Covid-19 pandemic. Sales increased across multiple categories and segments, including our advanced technologies such as cloud, endpoint, and high performance network security. We extended our Infinity platform with new Quantum appliances and newly expanded CloudGuard family. The new CloudGuard provides Cloud Native Security, a fully-automated platform that enables customers to leverage the speed and agility of the cloud, while utilizing a single pane of glass security management to protect their deployments and workloads."

Check Point's share price is up 5.52% in premarket trading at $131.22, giving a market cap of $18.4 billion.

Published by Globes, Israel business news - en.globes.co.il - on July 22, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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