Israel's Check Point Software Q3 revenue slightly misses estimates

Overview

• Israel cybersecurity firm's Q3 revenue fell 1% yr/yr, slightly missing analyst expectations

• Adjusted EPS for Q3 was in line with analyst expectations

• Company repurchased $325 mln in shares during the quarter

Outlook

• Company expects gradual revenue improvement beginning in the fourth quarter

• Check Point says recovery is taking longer than anticipated

• Company says leading indicators are improving

Result Drivers

• SECURITY SUBSCRIPTIONS - Co said 11% yr/yr growth in security subscriptions revenue was driven by strong demand for Email, CTEM, and AI Security

• RESEARCH & DEVELOPMENT TAX INCENTIVES - Co recognized $25 mln reduction in R&D expenses due to new Israeli tax incentive program

• RECOVERY OUTLOOK - Co said revenues reached a trough in Q3 and expects gradual improvement beginning in Q4, though recovery is taking longer than anticipated

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 25 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Check Point Software Technologies Ltd. is $145.00, about 4.7% below its October 30 closing price of $152.11

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)