Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Check Point profit jumps on strong demand for cyber security

Published 07/22/2015, 10:33 AM
Updated 07/22/2015, 10:35 AM
© Reuters.  Check Point profit jumps on strong demand for cyber security

By Tova Cohen

TEL AVIV (Reuters) - Network security provider Check Point Software Technologies (O:CHKP) is benefiting from strong global demand for threat-prevention and mobile-security products, it said on Wednesday as it reported better-than-expected quarterly profit.

Check Point, one the world's leading providers of corporate security software, has been expanding this year, buying two Israeli firms - cyber security start-up Hyperwise and Lacoon Mobile Security.

In the second quarter it bolstered its presence in the market for critical infrastructure protection with a combined hardware and software product built for deployment in remote, harsh environments. And last week it launched a product together with VMWare (N:VMW) for cloud security.

"If once security was something needed to help business, today before companies talk about business they talk about security," Chief Executive Gil Shwed said as Israel-based Check Point reported an 11 percent rise in second-quarter profit.

The company's shares opened up 9 percent at $85.84 on Nasdaq following the earnings report. The stock reached a 14-year high of $88.49 in May.

Check Point earned 99 cents per diluted share excluding one-time items in the second quarter, up from 89 cents a year earlier as revenue grew 9 percent to $395 million.

Analysts had, on average, forecast the firm would earn 95 cents a share on revenue of $392.6 million, according to Thomson Reuters I/B/E/S.

"This was a much better quarter than feared as the bears were calling for a soft quarter," said FBR Capital Markets managing director Daniel Ives.

Check Point, which has added over 500 workers in 2015, bringing its workforce to 3,700, forecast third-quarter earnings per share excluding one-time items of 92 cents to $1.02 on revenue of $392-$410 million. Analysts have forecast it will earn 97 cents on revenue of $403 million.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Shwed maintained his full-year adjusted profit forecast of $3.90 to $4.02 a share on revenue of $1.6-$1.65 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.