TEL AVIV (Reuters) - Network security provider Check Point Software Technologies (CHKP.O) reported quarterly net profit in line with forecasts thanks to growth in security subscriptions revenues, and affirmed its outlook for the year.
Check Point earned $1.38 per diluted share excluding one-time items in the second quarter, up from $1.37 a year earlier. Revenue grew 4% to $488 million, the Israel-based company said on Wednesday.
It was forecast to earn $1.37 a share on revenue of $488 million, according to I/B/E/S data from Refinitiv.
Chief Executive Gil Shwed said the company posted 13% growth in subscriptions for its security products, including protection for cloud computing and mobile phones.
For the third quarter the company forecast adjusted earnings per share of $1.36-$1.44 on revenue of $480-$500 million, in line with analysts’ estimates of EPS of $1.41 and revenue of $491 million.
It reiterated the company’s full year outlook for revenue of $1.94-$2.04 billion and adjusted EPS of $5.85-$6.25.
Its shares were down 1% to $114.5 in premarket Nasdaq trade after rising 12.7% so far this year.
“The bulls were hoping for more and the stock could be under pressure,” said Daniel Ives, managing director of equities research at Wedbush Securities.
Operating expenses rose in the second quarter as the company spent more on research and development and on sales and marketing, including recruiting staff to help sell new products.
“Check Point continues to be a steady ship on the cybersecurity front,” Ives said. “The company has clear subscription momentum into the second half, which is key with the shift to cloud security platforms accelerating in the field.”
Check Point said it bought back 2.8 million shares worth $325 million as part of its share repurchase program.
Editing by Steven Scheer and Deepa Babington