Check Point Software drops 8%+ on mixed second quarter results
Shares of Check Point Software Technologies Ltd. closed 8.2% lower today after it posted mixed second quarter earnings.
The cybersecurity provider generated $260 million in adjusted operating income during the three months ended June 30. That translated into adjusted earnings of $2.55 per share, 10 cents more than what analysts polled by Zacks had forecasted. The company topped the consensus estimate despite a slight gross margin decrease that it attributed to higher memory chip costs.
By contrast, Check Point’s top line missed expectations. The company closed the second quarter with sales of $674 million. That’s $1 million lower than the midpoint of its guidance and a fraction of a percent lower than the consensus estimate.
Check Point’s sales growth was dragged down by its product revenue segment. The segment includes the company’s physical firewalls and certain other offerings that it doesn’t sell on a subscription basis. Product revenue declined 14% year-over-year in the second quarter.
