Check Point’s Stock Falls in After Hours Trading
The cybersecurity company’s profit forecast for the fourth quarter disappoints analysts
Network and cloud security provider Check Point Software Technologies Ltd’s share price dropped by 9.9% in after hours trading Tuesday following a disappointing fourth quarter profit forecast published by the company.
The Tel Aviv-based firm projected a profit-per-share range of $1.45-1.55 for the fourth quarter and revenues of $485-525 million. The analysts expectations stood at $1.48 per share and revenues of $529.2.
Check Point co-founder and CEO Gil Shwed
Check Point reported a 6.3% increase in revenues for its third quarter, up to $455 million from $428 million in the same quarter last year. Revenues decreased 1% from $459 million in revenues reported by the company for the second quarter.
Nasdaq-listed Check Point also reported a 10% percent rise in quarterly profits (Non-GAAP), crediting the expanded demand for mobile security products for the growth. The company’s net income rose to $215 million or $1.3 per share, in the third quarter, from $194 million, or $1.13 per share, a year earlier.
Since 2003, Check Point has regularly announced stock buybacks. In May 2016, the company reported that it planned to purchase $1.5 billion worth of stock, representing about a tenth of its market capitalization. In 2015, the buyback totaled about 1.23 billion.