Oppenheimer Remains Bullish on Check Point Software Technology (CHKP) Following 1Q Report
Oppenheimer maintained an Outperform rating and $95.00 price target on Check Point Software Technology (NASDAQ: CHKP) following the company's 1Q earnings report. CHKP reported in-line revenue results of $404.3M, compared with the consensus estimate of $404.2M. EPS of $1.06 beat the Street's $1.03 on better operating margins.
Analyst Shaul Eyal commented, "CHKP reported 1Q16 revenue of $404.3M (up 9% YoY), in line with consensus' $404.2M. EPS of $1.06 beat consensus' $1.03 on better operating margins of 55.3% vs. Street's 55.1%. Bookings, at $382M slightly exceeded the Street's $380M reflecting healthy closure rates. Cash from operations of $324M bested the Street's $288M while deferred revenue of $883.4M (up ~14% YoY) was above the Street's $882M. We view results positively and believe FY16 revenue guidance could be easily reiterated with the current mid point of 7.5% reflecting current Street's expectations. We believe CHKP's in-line 1Q16 is positive for the security software universe indicating healthy spending trends. We'll review our model following the 8.30 a.m. EST call (dial-in: 201-689-8261)."
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Shares of Checkpoint Software closed at $88.88 yesterday.