Israel's Check Point Software Q2 revenue up 1%

Overview

• Israel cybersecurity firm's Q2 revenue up 1% yr/yr, slightly missed analyst expectations

• Adjusted EPS for Q2 rose 8% and beat analyst expectations

• Company expanded share repurchase program by $2 bln and bought back $325 mln in shares

Outlook

• Company did not provide specific financial guidance for the upcoming quarter or full year

• Check Point says it is expanding sales capacity to capture a growing market opportunity

• Company highlights focus on AI security products to address new generation of AI-driven threats

Result Drivers

• SECURITY SUBSCRIPTIONS - Security subscriptions revenue grew 12% yr/yr, offsetting declines in product and license revenue

• SALES CAPACITY EXPANSION - Co said it is significantly expanding sales capacity to capture market opportunity, per CEO Nadav Zafrir

• RD TAX INCENTIVE - Co recognized $28 mln reduction in RD expenses under new Israeli tax incentive program

Company press release: ID:nPn7vZdR4a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 25 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Check Point Software Technologies Ltd is $141.00, about 1% above its July 29 closing price of $139.67

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)