Check Point Software Technologies Ltd.
) is slated to report its first-quarter 2014 results, before the
opening bell, on Apr 29, 2014.
Last quarter, the company delivered a positive 3.37% earnings
surprise. Let's see how things are shaping up for the company
prior to the announcement.
Factors to Consider this Past Quarter
Check Point delivered better-than-expected fourth-quarter
results, which topped the Zacks Consensus Estimate on both counts
primarily driven by growth across its software and data center
We remain encouraged by rapid adoption of Check Point's data
center appliances and threat detecting solutions. Moreover, the
recent partnership with
), to make the cloud-computing environment more secure and
efficient, bodes well for the company. Additionally, the
company's share buy pack plan will supports the bottom line.
However, stiff competition from peers and an uncertain
economic environment remain the concerns.
Our proven model does not conclusively show that Check Point
Software is likely to beat the Zacks Consensus Estimate this
quarter. This is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. However, this is
not the case here as elaborated below.
Negative Zacks ESP:
Earnings ESP represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate. The Most Accurate
estimate stands at 76 cents while the Zacks Consensus Estimate is
higher at 78 cents resulting in an ESP of -2.56%.
Check Point's Zacks Rank #3 (Hold) when combined with a negative
ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
ON Semiconductor Corp.
) has an Earnings ESP of +6.67% and a Zacks Rank #1 (Strong
Level 3 Communications, Inc.
) has an Earnings ESP of +10.71% and a Zacks Rank #1.
CHECK PT SOFTW (CHKP): Free Stock Analysis
LEVEL 3 COMM (LVLT): Free Stock Analysis
ON SEMICON CORP (ONNN): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis
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