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For the second quarter, Check Point estimates revenues in the range of $570-$605 million ($587.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $588 million, suggesting a year-over-year increase of 3%.
The company anticipates non-GAAP earnings in the range of $1.85-$1.95 per share ($1.90 at the midpoint). The Zacks Consensus Estimate stands at $1.89 per share, indicating a year-over-year increase of approximately 15.2%.
The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 3.7%.
Check Point Software Technologies Ltd. Price and EPS Surprise
Check Point’s second-quarter top-line is likely to have benefited from continued strong performance across its Security Subscriptions and Software Updates and Maintenance segments, partially offset by weakness at its Products and Licenses division. Increased pricing across multiple product lines is likely to have aided the company’s top- and bottom-line performances in the quarter under discussion.
Check Point’s Security Subscriptions segment is likely to have benefited from growing demand for network security gateways to support higher capacities amid the hybrid work environment. This is expected to have spurred the demand for CHKP’s remote access virtual private network solutions. Solid demand for its CloudGuard, Quantum, Harmony, Horizon threat prevention and Infinity solutions is anticipated to have aided the segment’s top-line performance.
Our estimates for CHKP’s Security Subscriptions segment are pegged at $225.1 million, depicting a year-over-year increase of 7.3%. Our revenue estimate of $233.1 million for Software Updates and Maintenance division signifies improvement of 2.2% from the year-ago quarter’s $228 million.
Nonetheless, weakening global economy amid ongoing macroeconomic and geopolitical issues might have led enterprises postpone their large IT spending plans. This might have hurt Check Point’s Products and Licenses performance in the second quarter. Our estimate for the segment’s revenue stands at $127.7 million, signifying a 4.1% from the year-ago quarter’s $133.2 million.
The firm’s continued investments in cloud infrastructure, workforce enhancement and marketing activities 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 #2 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, Tyler Technologies (TYL - Free Report) , Alphabet (GOOGL - Free Report) and Spotify Technology (SPOT - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Tyler has an Earnings ESP of +0.54% and flaunts a Zacks Rank #1 at present. The company is scheduled to report second-quarter 2023 results on Jul 26. TYL’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 2.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TYL’s quarterly earnings is pegged at $1.86 per share, suggesting a year-over-year decrease of 1.1%. Its quarterly revenues are estimated to increase 4.7% year over year to $490.7 million.
Currently, Alaphabet has an Earnings ESP of +2.49% and carries a Zacks Rank #2. The company is set to report its second-quarter 2023 results on Jul 25. GOOGL’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, missing thrice and delivering an average negative earnings surprise of 4.4%.
The Zacks Consensus Estimate for GOOGL’s second-quarter earnings is pegged at $1.32 per share, implying a year-over-year surge of 9.1%. The company is estimated to report revenues of $60.24 billion, which suggests a surge of 4.8% from the year-ago quarter.
Spotify has an Earnings ESP of +30.98% and a Zacks Rank #3 at present. The company is set to report its second-quarter 2023 results on Jul 25, before market open. SPOT’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 20.2%.
The Zacks Consensus Estimate for Spotify’s second-quarter loss is pegged at 84 cents per share, indicating a 7.7% increase from the year-ago quarter’s loss of 91 cents. The consensus mark for revenues is pegged at $3.53 billion, suggesting a year-over-year increase of 15.8%.
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Check Point (CHKP) to Report Q2 Earnings: What's in the Offing?
Check Point Software Technologies (CHKP - Free Report) is scheduled to report its second-quarter 2023 results on Jul 26.
For the second quarter, Check Point estimates revenues in the range of $570-$605 million ($587.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $588 million, suggesting a year-over-year increase of 3%.
The company anticipates non-GAAP earnings in the range of $1.85-$1.95 per share ($1.90 at the midpoint). The Zacks Consensus Estimate stands at $1.89 per share, indicating a year-over-year increase of approximately 15.2%.
The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 3.7%.
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
Check Point’s second-quarter top-line is likely to have benefited from continued strong performance across its Security Subscriptions and Software Updates and Maintenance segments, partially offset by weakness at its Products and Licenses division. Increased pricing across multiple product lines is likely to have aided the company’s top- and bottom-line performances in the quarter under discussion.
Check Point’s Security Subscriptions segment is likely to have benefited from growing demand for network security gateways to support higher capacities amid the hybrid work environment. This is expected to have spurred the demand for CHKP’s remote access virtual private network solutions. Solid demand for its CloudGuard, Quantum, Harmony, Horizon threat prevention and Infinity solutions is anticipated to have aided the segment’s top-line performance.
Our estimates for CHKP’s Security Subscriptions segment are pegged at $225.1 million, depicting a year-over-year increase of 7.3%. Our revenue estimate of $233.1 million for Software Updates and Maintenance division signifies improvement of 2.2% from the year-ago quarter’s $228 million.
Nonetheless, weakening global economy amid ongoing macroeconomic and geopolitical issues might have led enterprises postpone their large IT spending plans. This might have hurt Check Point’s Products and Licenses performance in the second quarter. Our estimate for the segment’s revenue stands at $127.7 million, signifying a 4.1% from the year-ago quarter’s $133.2 million.
The firm’s continued investments in cloud infrastructure, workforce enhancement and marketing activities 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 #2 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, Tyler Technologies (TYL - Free Report) , Alphabet (GOOGL - Free Report) and Spotify Technology (SPOT - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Tyler has an Earnings ESP of +0.54% and flaunts a Zacks Rank #1 at present. The company is scheduled to report second-quarter 2023 results on Jul 26. TYL’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 2.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TYL’s quarterly earnings is pegged at $1.86 per share, suggesting a year-over-year decrease of 1.1%. Its quarterly revenues are estimated to increase 4.7% year over year to $490.7 million.
Currently, Alaphabet has an Earnings ESP of +2.49% and carries a Zacks Rank #2. The company is set to report its second-quarter 2023 results on Jul 25. GOOGL’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, missing thrice and delivering an average negative earnings surprise of 4.4%.
The Zacks Consensus Estimate for GOOGL’s second-quarter earnings is pegged at $1.32 per share, implying a year-over-year surge of 9.1%. The company is estimated to report revenues of $60.24 billion, which suggests a surge of 4.8% from the year-ago quarter.
Spotify has an Earnings ESP of +30.98% and a Zacks Rank #3 at present. The company is set to report its second-quarter 2023 results on Jul 25, before market open. SPOT’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 20.2%.
The Zacks Consensus Estimate for Spotify’s second-quarter loss is pegged at 84 cents per share, indicating a 7.7% increase from the year-ago quarter’s loss of 91 cents. The consensus mark for revenues is pegged at $3.53 billion, suggesting a year-over-year increase of 15.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.