Cybersecurity solutions provider Check Point Software Technologies Ltd. (CHKP) has reported better-than-expected results for the second quarter of 2021. The strong results were primarily driven by the growth witnessed in revenues.
Following the earnings, shares of the company declined 3.8% to close at $121.10 in Monday’s trading session.
The company reported quarterly earnings per share (EPS) of $1.61, up 2% from last year, surpassing the consensus estimate of $1.56.
The company reported quarterly revenues of $526.1 million, which denotes a growth of about 4.1% from last year. Further, it topped the consensus estimate of $523.8 million. This rise can be attributed primarily to the growth witnessed in the revenues generated from Security subscriptions.
The CEO of Check Point Software Technologies, Gil Shwed, said “We had a good second quarter. Strong execution drove double-digit growth across CloudGuard and Harmony, and triple-digit growth in Infinity platform sales. Overall we grew our security subscription revenues by 12%.” (See Check Point Software Technologies stock chart on TipRanks)
On July 26, Cowen & Co. analyst Shaul Eyal reiterated a Buy rating on the stock. The analyst, however, raised the price target from $140 to $142, which implies upside potential of 17.3% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 3 Buys, 3 Holds and 1 Sell. The average Check Point Software Technologies price target of $136.67 implies 12.9% upside potential from current levels.
Check Point Software Technologies scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have declined 2.3% over the past year.
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