Tag Archives: chkp

Check Point’s Slow Q2 Guidance Drags On Rival Palo Alto Networks

Check Point Software Technology ( CHKP ) stock fell Wednesday, tugging down shares of rival Palo Alto Networks ( PANW ) as well, after the No. 1 cybersecurity firm by market value topped earnings views by 3 cents but guided to decelerating Q2 metrics. In early trading on the stock market today , Check Point shares plunged as much as 6.6% before recovering a bit to a 4.5% loss Wednesday morning, near 85. Palo Alto Networks stock was down nearly 2%. Shares of both underperformed IBD’s 25-company Computer Software-Security industry group, which was weaker by nearly 1% Wednesday morning. The group is down 15% this year vs. a 20% drop in Palo Alto Networks stock and a 9% jump in Check Point stock. For Q1, Check Point reported $404 million in sales and $1.06 earnings per share ex items, up a respective 9% and 11% vs. the year-earlier period. The consensus of 34 analysts polled by Thomson Reuters modeled $404 million and $1.03. Check Point has reported 9% sales growth for the past six quarters, and EPS minus items has grown by double digits for the past five consecutive quarters. The company modeled $405 million to $435 million in current-quarter sales and $1.02 to $1.09 EPS minus items. At the midpoints, that’s up 6% and 7%, respectively. But the midpoints of both measures missed consensus views for $428 million and $1.09. And Check Point’s guidance reflects EPS deceleration from double digits and a decline from the company’s typical 9% sales growth. Check Point maintained its full-year guidance for $1.72 billion to $1.79 billion in sales, up 8%, and $4.45-$4.60 EPS minus items, up 9%. FBN analyst Shebly Seyrafi retained an outperform rating and 100 price target on Check Point stock, noting that the company typically delivers results at the high end of guidance. “Our own channel checks on Check Point noted that Check Point was discounting more in order to compete more effectively against Palo Alto Networks, Fortinet ( FTNT ) and others,” he wrote in a research report.

Check Point Q1 EPS Growth Seen Slipping Despite Steady Sales Growth

No. 1 cybersecurity firm Check Point Software Technology ( CHKP ) is expected early Wednesday to report its sixth consecutive quarter of 9% sales growth, but analysts model Q1 earnings decelerating to a single digit after four quarters of double-digit growth. For Q1, the consensus of 34 analysts polled by Thomson Reuters projects Check Point posting $404.4 million in sales and $1.03 earnings per share ex items, up 9% and 8%, respectively. Three months ago, Check Point guided to $395 million-$410 million and 99 cents-$1.05. For 2016, the company models $1.72 billion to $1.79 billion in sales and $4.45-$4.45 EPS minus items, up a respective 8% and 9%. On a year-over-year basis, Check Point’s sales have risen 9% for five straight quarters. The company’s EPS has risen by at least 11% for four consecutive quarters. Check Point’s Q1 deceleration would be the first in the past three quarters. In afternoon trading on the stock market today , Check Point stock was down 1.5%, near 88, reflecting a 2% dip in IBD’s 41-company Computer Software-Security industry group. Check Point is No. 1 in the group by market cap ($15.6 billion) and boasts a group-leading Composite Rating of 84 out of a best-possible 99. Last week, it broke out at an 88.59 buy point. Others leaders like Palo Alto Networks ( PANW ), CyberArk Software ( CYBR ) and Symantec ( SYMC ) have middling CRs of 56, 50 and 44, respectively.

Fortinet Scraps To ‘Make Way’ Against Cisco, Check Point, Palo Alto

Cybersecurity firm Fortinet ( FTNT ) must shed its SMB-only reputation to tackle competitive challenges from rivals Check Point Software Technology ( CHKP ), Cisco Systems ( CSCO ) and Palo Alto Networks ( PANW ), a Dougherty analyst says. But the Sunnyvale, Calif., company has made headway with its previously tumbling salesforce and, late Tuesday, is expected to a deliver a “relatively solid” Q1 report, Dougherty analyst Catherine Trebnick wrote in a research report. For Q1, the consensus of 33 analysts polled by Thomson Reuters projects $273.4 million in sales and 9 cents earnings per share ex items, up a respective 28% and 12.5%. Three months ago, Fortinet guided to $270 million to $275 million and 8-9 cents. Fortinet’s billings model for $315 million to $322 million would be up 25% at the midpoint of guidance vs. the year-earlier period. Billings would drop 18% sequentially, though following a massive Q4 billings beat. Trebnick maintained her 38 price target and buy rating on Fortinet stock. Industry checks show Fortinet continues to dominate within the SMB market and is benefiting from the rip-and-replace of older firewall systems. “According to our sources, next-generation firewall refreshing amongst SMBs is occurring as many in this portion of the market have been slower to upgrade than large enterprises,” she wrote. Fortinet also appears to be winning in the small data center space, Trebnick wrote. But playing with bigger Check Point, Cisco and Palo Alto Networks will require shedding that “stigma as an SMB-only provider,” she wrote. “They have yet to make way against competitors in this space,” she wrote. Fortinet stock rose 2.1% to close at 30.27 in the  stock market today , somewhat outperforming the broader cybersecurity market.