Check Point Software Q3 Profit Rises, Tops View, Despite Lower Margin - Update

(RTTNews) - Check Point Software Technologies Ltd (CHKP) reported Monday a higher profit in its third quarter, benefited by increase revenues, despite lower margin. Adjusted earnings per share and top line beat analysts' estimates.

Gil Shwed, founder, chairman, and chief executive officer, said, "We are very pleased with our healthy third quarter results. Revenue and earnings per share for the quarter were toward the high-end of our projections, underscoring the strength of our business. The recently launched data center and small appliance families were received enthusiastically by our customers and posted another quarter of high growth."

The company's third-quarter net income grew 5 percent to $159.70 million from last year's $152.41 million. Earnings per share rose 10 percent to $0.80 from $0.73 in the prior year.

Adjusted net income, which excluded certain items, was $168.9 million or $0.85 per share, while last year's earnings were $164.1 million or $0.79 per share.

On average, 27 analysts polled by Thomson Reuters expected earnings per share of $0.84 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenue for the tri-monthly period was $344.13 million, 4 percent higher than last year's $332.36 million, whereas 25 analysts estimated revenues of $343.62 million for the quarter.

As of September 30, the company had deferred revenues of $566.8 million, an increase of 12 percent from $505.9 million as of last year's September 30.

In the quarter, operating income rose 2 percent year-over-year to $186.5 million, while operating margin dropped to 54 percent from 55 percent a year earlier. Adjusted operating income was $200.8 million or 58 percent of revenues, compared to 59 percent of revenues a year earlier.

Check Point shares closed Friday's trading at $58.41, up $0.84 or 1.46 percent.