Notable Mover: Check Point Software Technologies Ltd. (NASDAQ:CHKP)

Check Point Software Technologies Ltd. (NASDAQ:CHKP) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $1.06 per share on revenue of $404.27M. Analysts had been modeling earning per share of $1.03 with $404.39M in revenue.

Check Point Software Technologies Ltd. (NASDAQ:CHKP) announced its financial results for the first quarter ended March 31, 2016.

First Quarter 2016:

• Total Revenue: $404 million, representing a 9 percent increase year over year


• Non-GAAP Operating Income: $224 million, representing 55 percent of revenues


• Non-GAAP EPS: $1.06, representing an 11 percent increase year over year


• Deferred Revenues: $883 million, representing a 14 percent increase year over year

“Revenues grew nine percent while non-GAAP earnings per share achieved eleven percent growth and exceeded our projections. This success was driven primarily by advanced threat prevention capabilities which was evident in our subscription revenue growth,” said Gil Shwed, founder and chief executive officer of Check Point Software Technologies, “In addition, our newly announced high-end and datacenter security appliances, optimized to deliver next generation threat prevention, got off to a great start in the marketplace.”

Financial Highlights for the First Quarter of 2016:

• Total Revenue: $404 million compared to $373 million in the first quarter of 2015.


• GAAP Operating Income: $202 million compared to $197 million in the first quarter of 2015.


• Non-GAAP Operating Income: $224 million compared to $216 million in the first quarter of 2015.


• GAAP Net Income and Earnings per Diluted Share: GAAP net income was $167 million compared to $161 million in the first quarter of 2015. GAAP earnings per diluted share were $0.95 compared to $0.86 in the first quarter of 2015.


• Non-GAAP Net Income: Non-GAAP net income was $187 million compared to $179 million in the first quarter of 2015.


• Non-GAAP Earnings per Diluted Share: $1.06 compared to $0.95 in the first quarter of 2015.


• Deferred Revenues: As of March 31, 2016, deferred revenues were $883 million compared to $772 million as of March 31, 2015.


• Cash Flow: Cash flow from operations of $324 million compared to $285 million in the first quarter of 2015.


• Share Repurchase Program: During the first quarter of 2016, the company repurchased 3.13 million shares at a total cost of $247 million.


• Cash Balances, Marketable Securities and Short Term Deposits: $3,729 million as of March 31, 2016, compared to $3,734 million as of March 31, 2015.

Check Point Software Technologies Ltd. earnings per share showed an increasing trend of 8.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 499%.Analysts project EPS growth over the next 5 years at 10.63%. It has EPS annual growth over the past 5 fiscal years of 11.9% when sales grew 8.2. It reported 8.5% sales growth, and 10.3% EPS growth in the last quarter.

The stock is trading at $84.97, up 30.54% from 52-week low of $65.09. The stock trades down -5.57% from its peak of $89.98 and 3.75% above the consensus price target of $88.16. Its volume clocked up at 7.99 million shares which is higher than the average volume of 1.5 million shares. Its market capitalization currently stands at $14.50B.