Check Point beats the analysts in Q3

Gil Shwed Photo: Reuters
Gil Shwed Photo: Reuters

UPDATE: However, the Israeli cybersecurity company issued disappointing fourth quarter guidance and its share is down 9.86% in premarket trading on Wall Street. 

Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) reported its financial results for the third quarter of 2017 last night and once again the numbers exceeded the analysts' expectations.

Non-GAAP earnings per share was $1.30, up 15% from the corresponding quarter of 2016, and well above the analysts' prediction of $1.12. Non-GAAP net profit was $215 million compared with $194 million in the third quarter of 2016. Revenue was $454.63 million, 6% up from the corresponding quarter of 2016 and $5.44 million above the analysts' forecast.

Check Point founder and CEO Gil Shwed said, “We delivered good third quarter financial results with revenues coming in toward the upper end of our projections and earnings per share that exceeded our projections. Our advanced threat protections continued to see nice adoption as the Infinity platform and vendor consolidation continues to resonate with customers. During the quarter we continued to extend the reach of the Infinity platform and elevated the level of security we provide with anti-ransomware technology, cloud security for Azure stack, and the integration of the Microsoft Intune mobile management with our SandBlast mobile security."

Check Point's share price has risen 40% this year, and the company also gained a major symbolic boost by surpassing toubled Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) to become Israel's most valuable company.

Following publication of the results, Check Point's share price rose 1.05% on Wall Street to $117.71, giving a market cap of $19.24 billion. Teva's share price rose 1.85% to $13.80, giving a market cap of $14.01 billion.

However, in a conference call, Check Point forecast adjusted earnings of $1.45 to $1.55 a share on revenue of $485 million to $525 million for the fourth quarter because of restructuring in the company's US sales force. These figures were below expectations and in premarket trading the share is down 9.86% at $11.61.

Published by Globes [online], Israel business news - - on November 1, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Gil Shwed Photo: Reuters
Gil Shwed Photo: Reuters
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