Check Point Software Technologies CHKP reported strong fourth-quarter 2022 results, wherein both the top and bottom lines surpassed the respective Zacks Consensus Estimate and improved year over year.
The IT security solutions provider reported non-GAAP earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.35. The bottom line increased 9% from the year-ago quarter’s earnings of $2.25 per share.
Check Point’s quarterly revenues climbed 7% year over year to $638 million, outpacing the Zacks Consensus Estimate of $633.6 million. This upside was driven by double-digit growth in product and subscription revenues.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise 
Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote
Quarterly Details
Security subscription revenues were $231 million, increasing 13% year over year on double-digit revenue growth in Quantum, CloudGuard and Harmony solutions.
Products and licenses revenues increased 4.2% year over year to $173.4 million. Products, which are currently in the process of transitioning to cloud solutions, have been included in the subscription line.
Total revenues from product and security subscriptions were $404.4 million, up 9.1% year over year.
Software updates and maintenance revenues increased to $234.1 million from $228.6 million reported in the year-ago quarter.
As of Dec 31, 2022, deferred revenues were $1.88 billion, up 10% year over year.
Non-GAAP operating income for the fourth quarter of 2022 totaled $289 million, up from $285 million in the year-ago quarter. Non-GAAP operating margin contracted 200 basis points to 45%.
Balance Sheet & Other Details
Check Point exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $3.50 billion compared with the previous quarter’s $3.57 billion.
The company generated cash worth $230 million and $1.08 billion from operational activities during the fourth quarter and full year 2022.
It repurchased 2.6 million shares for about $325 million during the reported quarter.
Zacks Rank & Key Picks
Check Point currently has a Zacks Rank #3 (Hold). Shares of CHKP have declined 1.1% in the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Baidu BIDU, Fabrinet FN and Bandwidth BAND. While Baidu and Fabrinet sport a Zacks Rank #1 (Strong Buy), Bandwidth carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Baidu’s fourth-quarter 2022 earnings has been revised 49 cents southward to $2.14 per share over the past 30 days. For 2022, earnings estimates have dropped by 3.4% to $8.64 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 50.2%. Shares of the company have lost 8.7% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past seven days. For fiscal 2023, earnings estimates have moved north by 24 cents to $7.71 per share in the past seven days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 27.3% in the past year.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 90 days. For 2022, earnings estimates have moved north by 5 cents to 37 cents per share in the past 90 days.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 59.2% in the past year.
Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)
The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks NowCheck Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Fabrinet (FN) : Free Stock Analysis Report
Bandwidth Inc. (BAND) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
