The share price of Check Point Software Technologies Ltd. (Nasdaq: CHKP) fell 13.2% yesterday to $41.15, giving a market cap of $8.47 billion, after publishing a weak guidance for the fourth quarter, despite reporting revenue and profit growth for the third quarter, slightly beating the analysts' earnings per share consensus.
"From a business perspective, while we’ve seen continued strength from the US, Europe has continued to be impacted by economic uncertainties and the strengthening of the dollar," said Check Point chairman and CEO Gil Shwed at the analyst conference following the publication of the third quarter results.
Shwed said guidance for the fourth quarter was non-GAAP earnings per share of $0.84-091 on $355-387 million revenue.
The earnings per share guidance means non-GAAP net profit of $175-190 million. The fourth quarter guidance means that Check Point expects to post a net profit of $658-673 million on $1.33-1.36 billion revenue, giving 6-7% revenue growth over and 9-11.5% profit growth.
Check Point's previous full-year revenue guidance was higher, at $1.35-1.4 billion. However, it raised the lower end of its earnings per share guidance from $3.10-3.20 to $3.13-3.20.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2012
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