Earnings Preview For Check Point Software (CHKP)

Check Point Software Technologies CHKP reports 2011 first-quarter results before the market open on Thursday, April 14. Analysts expect a profit of $0.62 per share on revenues of $276.70 million. Earnings estimates have been flat over the past three months. In addition to the headline earnings number, analysts will pay attention to billings growth and deferred revenue. Investors have been optimistic regarding market share gains, so any further color on this topic will likely move the stock. Finally, average selling prices will be under the microscope. The stock is currently trading at 18.7x 2011 estimates of $2.74 per share, which is above the market multiple. Check Point has exceeded estimates in each of the past four quarters by at least 9.30%. Optimism is high that the company will again exceed estimates. The stock is up about 10% so far this year, and is trading near its 52-week high of $52.44. The company develops, markets, and supports a range of software, and combined hardware and software products and services for information technology security worldwide.