Check Point Software shares slump 4% as sales results disappoint
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Check Point Software (NASDAQ:CHKP) shares fell more than 4% Monday as the cybersecurity company reported first-quarter results that failed to impress investors.
For the period ending March 31, Check Point (CHKP) earned $1.80 per share, excluding one-time items, on revenue that rose 4% from a year ago, to $566M. 
Israel-based Check Point (CHKP) added that security subscription revenue rose 13% year-over-year to $228M and deferred revenue rose 8% year-over-year to $1.8B.
Analysts were expecting the company to earn $1.73 a share and generate $568.69M in revenue.
In addition, Check Point (CHKP) spent $325M during the period buying back 2.6M worth of stock during the period.
Zscaler (ZS), Palo Alto Networks (PANW) and a few other cybersecurity stocks were lower in early trading on back of Check Point's (CHKP) quarterly results.
Update: On the earnings call, Check Point (CHKP) maintained its 2023 revenue estimate of $2.34-$2.51 billion and earnings per share excluding one-time items of $7.70-$8.30 - versus analysts' expectations of revenue of $2.43 billion and adjusted EPS of $7.98. Revenue in 2022 reached $2.33 billion.
For the second quarter, Check Point projected revenue of $570-$605 million and adjusted EPS of $1.85-$1.95. Analysts had forecast EPS of $1.88 on revenue of $596 million.
On its earnings call, Check Point (CHKP) said it expects sales to be between $570M and $605M, with adjusted earnings between $1.85 and $1.95 per share. Analysts expected the company to generate $596M in revenue and $1.88 per share in adjusted earnings.
For the full-year Check Point (CHKP) expects sales to be between $2.34B and $2.51B, compared to analysts' estimates of $2.43B in sales.
Additionally, CEO Gil Shwed said the company could take advantage of industry consolidation.
Update 2: BMO Capital analyst Keith Bachman downgraded Check Point (CHKP) to market perform after the results, noting that product revenues are likely to stay "weak" in 2023.
"Further, we do not envision CHKPâs newer offerings, such as SD-WAN, to improve subscription revenue growth this year," Bachman wrote in an investor note. "Hence, we think weak product revenues, and likely billings, will keep the stock range-bound for the year."
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