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Market Overview

Earnings Preview for Check Point Software Tech


On Monday, April 26, Check Point Software Tech (NASDAQ:CHKP) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Check Point Software Tech modeled for quarterly EPS of $1.49 on revenue of $502.36 million. Check Point Software Tech EPS in the same period a year ago totaled $1.42. Sales were $486.50 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Monday, earnings would be up 4.93%. Revenue would be up 3.26% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 2.11 1.53 1.44 1.38
EPS Actual 2.17 1.64 1.58 1.42
Revenue Estimate 555.40 M 504.06 M 488.04 M 480.35 M
Revenue Actual 563.80 M 509.00 M 505.60 M 486.50 M

eps graph

Stock Performance

Shares of Check Point Software Tech were trading at $119.94 as of April 22. Over the last 52-week period, shares are up 11.61%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Check Point Software Tech is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings