Check Point Software Technologies Raises FY21 Outlook After Q3 Earnings Beat

Check Point Software Technologies Ltd CHKP reported third-quarter FY21 revenue growth of 5% year-on-year to $534 million, beating the consensus of $529.6 million.
Revenue from Products and licenses was nearly flat at $119.1 million, Security subscriptions increased 12.6% Y/Y to $190 million, and Software updates and maintenance grew 2.2% Y/Y to $224.9 million.
Margin: The non-GAAP operating margin contracted 300 basis points to 49%.
Non-GAAP EPS of $1.65 beat the consensus of $1.6.
The company generated $251 million in operating cash flow and held $3.84 billion in cash and equivalents.
During Q3, Check Point announced a $2 billion expansion to the share repurchase program with authorization to repurchase up to $325 million each quarter.
"Subscription revenues increased by 13 percent driven by triple-digit growth in Infinity platform sales and double-digit growth in Harmony and CloudGuard," said CEO Gil Shwed.
Outlook: Check Point Software Technologies expects Q4 revenue of $560 million - $605 million (consensus $582.19 million) and adjusted EPS of $2.02 - $2.22 (consensus $2.06), Reuters reports.
For FY21, it sees revenue of $2.13 billion - $2.72 billion (consensus $2.14 billion) and adjusted EPS of $6.81 -$7.01 (consensus $6.78), the report added. It had forecast revenue of $2.08 billion -$2.18 billion and adjusted EPS of $6.45 - $6.85.
Price Action: CHKP shares traded higher by 2.22% at $120.74 on the last check Thursday.

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