Check Point Earnings: Momentum Improving; Founder and CEO Gil Shwed Transitioning to Chairman Role

Narrow-moat Check Point Software Technologies reported fourth-quarter 2023 numbers that were above FactSet consensus and slightly above the EPS guidance range. Overall, total revenue growth remained modest at 4% as 15% growth in subscriptions was dampened by declining product sales (firewalls). However, positive momentum was evident this quarter as product orders increased by double digits, which should return product revenue growth to positive levels in the second half of 2024. Furthermore, new business growth for the group was in double digits following three to four quarters of declines. Shares finished up 1% intraday. We don’t expect to make a material change to our $150 fair value estimate. Shares have rallied in recent months and now look fairly valued.