Check Point Software Q1 Profit Falls, But Beats Estimates

(RTTNews) - Check Point Software Technologies Ltd (CHKP), on Wednesday reported a decline in profit for the first quarter, particularly reflecting a rise in operating expenses. However, on adjusted basis, the company's earnings beat the Street view.

For the three-month period to March, the company reported a net income of $169.4 million or $1.30 per share, compared with $182.9 million or $1.33 per share, reported for the same period last year.

The bottom line was impacted by operating expenses that went up to $342.5 million from $292.8 million during the corresponding period last year. The total cost of revenues also climbed to $70.1 million, from $56.6 million.

Excluding items, earnings were $203.6 million or $1.57 per share, versus $211.2 million or $1.54 per share, reported for the first quarter of 2021.

Twenty-seven analysts, on average, polled by Thomson-Reuters were estimating the firm to report earnings per share at $1.54. Analysts' estimates typically exclude one-time items.

Operating income of the firm moved down to $200.2 million from $214.8 million, on year-on-year basis.

Amidst an increased demand, Check Point reported a total revenue of $542.7 million, higher than $507.6 million last year.