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Check Point (CHKP) to Report Q1 Earnings: What's in the Cards?
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Check Point Software Technologies (CHKP - Free Report) is scheduled to report its first-quarter 2023 results on May 1, before market open.
For the first quarter, Check Point projects revenues between $545 million and $585 million ($565 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $569 million, suggesting a 4.8% increase from the year-ago quarter’s reported figure.
Additionally, CHKP forecasts adjusted earnings per share in the range of $1.68-$1.78 ($1.73 at the midpoint). The consensus mark for earnings is pegged at $1.74 per share, which is 10.8% higher than the year-ago quarter’s earnings of $1.57.
The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 3.4%.
Check Point Software Technologies Ltd. Price and EPS Surprise
Check Point’s quarterly performance is likely to have benefited from increased security subscriptions due to solid demand for its CloudGuard, Quantum, Harmony, Horizon threat prevention and Infinity solutions.
Hybrid work environment has urged the greater need for network security. This trend is anticipated to have fueled demand for Check Point’s products during the quarter under review.
Moreover, increased demand for network security gateways to support higher capacities amid the hybrid work environment is expected to have spurred demand for CHKP’s remote access virtual private network solutions.
Nonetheless, weakening global economy amid ongoing macroeconomic and geopolitical issues led enterprises to postpone their large IT spending plans. This might have hurt Check Point’s top line in the first quarter. Also, the firm’s elevated investments in sales and marketing efforts might have clipped margins during the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Check Point this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
CHKP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Cactus (WHD - Free Report) , Garmin (GRMN - Free Report) and Sabre (SABR - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Cactus has an Earnings ESP of +1.79% and sports a Zacks Rank #1 at present. The company is set to report its first-quarter 2023 results on May 9. WHD’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WHD’s first-quarter earnings is pegged at 56 cents per share, indicating an 86.7% surge from the year-ago quarter’s 30 cents. The consensus mark for revenues is pegged at $213.8 million, suggesting a year-over-year increase of 46.5%.
Currently, Garmin has an Earnings ESP of +5.79% and carries a Zacks Rank #3 at present. The company is scheduled to report its first-quarter 2023 results on May 3. GRMN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an average earnings surprise of 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is $1 per share, indicating a year-over-year decline of 9.9%. The company is estimated to report revenues of $1.08 billion, which suggests a drop of 7.9% from the year-ago quarter.
Sabre has an Earnings ESP of +19.15% and carries a Zacks Rank #3 at present. The company is set to report first-quarter 2023 results on May 4. SABR’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing once and matching once, the average surprise being 9.9%.
The Zacks Consensus Estimate for SABR’s quarterly loss is pegged at 24 cents per share, suggesting a year-over-year increase of 17.2%. Its quarterly revenues are estimated to increase 24.4% year over year to $727.7 million.
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Check Point (CHKP) to Report Q1 Earnings: What's in the Cards?
Check Point Software Technologies (CHKP - Free Report) is scheduled to report its first-quarter 2023 results on May 1, before market open.
For the first quarter, Check Point projects revenues between $545 million and $585 million ($565 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $569 million, suggesting a 4.8% increase from the year-ago quarter’s reported figure.
Additionally, CHKP forecasts adjusted earnings per share in the range of $1.68-$1.78 ($1.73 at the midpoint). The consensus mark for earnings is pegged at $1.74 per share, which is 10.8% higher than the year-ago quarter’s earnings of $1.57.
The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 3.4%.
Check Point Software Technologies Ltd. Price and EPS Surprise
Check Point Software Technologies Ltd. price-eps-surprise | Check Point Software Technologies Ltd. Quote
Factors to Note Ahead of Q1 Earnings
Check Point’s quarterly performance is likely to have benefited from increased security subscriptions due to solid demand for its CloudGuard, Quantum, Harmony, Horizon threat prevention and Infinity solutions.
Hybrid work environment has urged the greater need for network security. This trend is anticipated to have fueled demand for Check Point’s products during the quarter under review.
Moreover, increased demand for network security gateways to support higher capacities amid the hybrid work environment is expected to have spurred demand for CHKP’s remote access virtual private network solutions.
Nonetheless, weakening global economy amid ongoing macroeconomic and geopolitical issues led enterprises to postpone their large IT spending plans. This might have hurt Check Point’s top line in the first quarter. Also, the firm’s elevated investments in sales and marketing efforts might have clipped margins during the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Check Point this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
CHKP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Cactus (WHD - Free Report) , Garmin (GRMN - Free Report) and Sabre (SABR - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Cactus has an Earnings ESP of +1.79% and sports a Zacks Rank #1 at present. The company is set to report its first-quarter 2023 results on May 9. WHD’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WHD’s first-quarter earnings is pegged at 56 cents per share, indicating an 86.7% surge from the year-ago quarter’s 30 cents. The consensus mark for revenues is pegged at $213.8 million, suggesting a year-over-year increase of 46.5%.
Currently, Garmin has an Earnings ESP of +5.79% and carries a Zacks Rank #3 at present. The company is scheduled to report its first-quarter 2023 results on May 3. GRMN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an average earnings surprise of 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is $1 per share, indicating a year-over-year decline of 9.9%. The company is estimated to report revenues of $1.08 billion, which suggests a drop of 7.9% from the year-ago quarter.
Sabre has an Earnings ESP of +19.15% and carries a Zacks Rank #3 at present. The company is set to report first-quarter 2023 results on May 4. SABR’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing once and matching once, the average surprise being 9.9%.
The Zacks Consensus Estimate for SABR’s quarterly loss is pegged at 24 cents per share, suggesting a year-over-year increase of 17.2%. Its quarterly revenues are estimated to increase 24.4% year over year to $727.7 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.