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Check Point Software Technology shares dip despite earnings, revenue topping consensus

Published 02/06/2024, 08:35 AM
Updated 02/06/2024, 08:41 AM
© Reuters.  Check Point Software Technology (CHKP) shares dip despite earnings, revenue topping consensus

Check Point Software Technology (NASDAQ:CHKP) shares dipped premarket Tuesday on the back of its fourth-quarter earnings release, which topped consensus earnings and revenue expectations.

The company reported Q4 EPS of $2.57, $0.10 better than the analyst estimate of $2.47. Revenue for the quarter came in at $664 million, up 4% year-on-year and above the consensus estimate of $662.09 million.

CHKP shares are currently down 2.4% at $157.01 per share in premarket trading.

The company said its security subscription revenues rose 15% to $266 million, driven by demand for its AI-powered and cloud-delivered Infinity security platform.

"Our R&D organization continues to deliver industry-leading threat prevention rates and innovative AI technologies," said Gil Shwed, founder and CEO of Check Point Software. "While our salesforce executed a turnaround in customer engagement, delivering double-digit new business growth in the fourth quarter."

Shwed also announced he intends to transition into the role of Executive Chairman. "We're initiating the succession process to hire a new CEO, and once completed, I will transition into my new position as executive chairman," he added.

Following the report, TD Cowen analysts said the report was in line, but "the Street wanted more," while the "FY24 guide could support recent positive momentum."

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