Check Point Software Technologies (NASDAQ:CHKP) declined in pre-market trading after the Israeli software company reported its fourth-quarter results. The firm generated fourth-quarter revenues of $664 million, an increase of 4% year-over-year and above consensus estimates of $662.1 million.
The company’s adjusted earnings jumped by 5% year-over-year to $2.57 per share, beating Street estimates of $2.48 per share. Moreover, in FY23, CHKP achieved an adjusted EPS growth of 14% – the highest in over a decade. The firm also achieved a 45% adjusted operating margin, among the highest in the industry. In addition, the company’s Infinity security platform drove a 15% growth in security subscription revenues.
Check Point added that its current CEO, Gil Schwed, plans to transition to the role of Executive Chairman. The company’s management stated that it has started the process of hiring a new CEO, and once a new CEO is hired, Schwed will transition to his new position as Executive Chairman.
Is CHKP a Good Stock to Buy?
Analysts remain cautiously optimistic about CHKP with a Moderate Buy consensus rating based on eight Buys and nine Holds. Over the past year, CHKP has gained by more than 25%, and the average CHKP price target of $165.13 implies an upside potential of 2.7% at current levels.
