Check Point Earnings: Platform Strategy Continues To Gain Traction With Infinity Now 10% of Sales

Narrow-moat Check Point Software Technologies reported second-quarter numbers that were slightly above FactSet consensus and guidance. Second-quarter revenue of $589 million was up 3% versus 2022 with security subscriptions up 14%, and software updates/maintenance up 2%, but products and licenses were down 12%. Guidance for 2023 was confirmed for revenue of $2.34 billion-$2.51 billion and non-GAAP EPS of $7.70-$8.30 (GAAP EPS $6.48-$$7.08). Third-quarter guidance is revenue of $570 million-$605 million with non-GAAP EPS of $1.97-$2.07 (GAAP EPS $1.62-$1.72). Shares closed up 2.6% on the day. We don’t expect to make a material change to our forecast or $150 fair value estimate. At current levels, shares look moderately undervalued.