Wunderlich Securities Gives Earnings Preview On Check Point Software Technologies

Check Point CHKP is slated to report March quarter results the morning of April 14. Wunderlich's checks suggest normal seasonal demand, which should support results generally in line with consensus estimates. It expects the company will maintain FY guidance but it sees currency and exposure to Japan as potential headwinds to upside versus June quarter consensus estimates. Wunderlich maintains a Hold rating and $46 price target on CHKP shares. Wunderlich's estimate is for EPS of $0.62 on revenue of $274 million, in line with consensus estimates. Its checks suggest demand in the March quarter was consistent with normal seasonal trends and it remains comfortable that the company will deliver results in line to ahead of estimates. In fiscal 2010 CHKP derived 16% of revenue from the Asia Pacific and Japan region. It estimates approximately half of this revenue is derived from Japan. Wunderlich believes CHKP remains a core holding in the technology space as the company embodies a strong technology portfolio merged with unmatched operational efficiency. However, on a near-term basis it views the shares as fairly valued and maintains its Hold rating on CHKP shares. CHKP closed Tuesday at $51.38