Shares of IT security solutions provider Check Point Software (NASDAQ:CHKP) are sliding in the pre-market session today after the company announced a mixed set of first-quarter numbers.
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Revenue inched up 4.2% year-over-year to $566 million but fell short of estimates by $2.7 million. EPS at $1.80, on the other hand, came in ahead of expectations by $0.06. During the quarter, CHKP’s security subscription revenue rose by 13% to $228 million. Additionally, its deferred revenues also inched up by 8% to ~$1.8 billion during this period.
The company is witnessing gains across CloudGuard and Harmony E-mail product offerings. Nonetheless, product sales cycles have been extended amid a challenging macroeconomic backdrop.
CHKP had a cash pile of $3.62 billion at the end of March 2023 and bought back 2.6 million shares for about $325 million in Q1.
Overall, the Street has a $137.70 consensus price target on CHKP, implying a potential upside of 8.1% in the stock.
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