Wed Jul 18, 2012 9:04pm IST–Israel-based computer security firm Check Point Software Technologies (CHKP.O) posted higher quarterly profit and kept its full-year targets, easing fears that companies might cut spending on their networks in a faltering global economy.
Check Point said on Wednesday new products like ThreatCloud, which allows businesses to team up to fight cyber crime, were helping it to gain market share, and also announced plans to buy up to $1 billion of its shares in the next two years.
Its shares, hit recently by fears of slowing demand, jumped 10 percent in early Nasdaq trading.
“We take (the) current performance as a sigh of relief given the Street’s expectations and some observers’ expectations for negative results,” said Oppenheimer analyst Shaul Eyal.
He estimated the share buyback could boost earnings per share by 25 to 30 cents over the next two years.
Check Point posted earnings per share excluding one-off items of 77 cents in the second quarter, compared with 68 cents a year earlier. Revenue rose 9 percent to $329 million.
Check Point had been expected to earn 76 cents a share on revenue of $331 million, according to Thomson Reuters I/B/E/S.
Billings grew 9 percent, which investors should view positively, Nomura analyst Rick Sherlund said, adding that “given the 29 percent pullback in the stock since first quarter earnings, we believe the stock was discounting a worse result”…Read More>>