Why Check Point Software Plunged
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What: Shares of Check Point Software (NAS: CHKP) have plunged today by as much as 12% after the company reported earnings.
So what: Both revenue and earnings in the first quarter came in slightly ahead of the Street's expectations, with $313.1 million in sales and a profit of $0.74 per share. The real kicker was in guidance for the coming quarter, which left investors wanting more.
Now what: Second-quarter sales should be in the range of $324 million-$336 million, with adjusted earnings per share of $0.74-$0.77. Analysts' estimates of $333.7 million in revenue and a $0.76 per share profit are within reach, but are on the high end of the company's guidance. However, CEO Gil Schwed did reiterate full-year outlook for earnings of $3.10-$3.20 per share.
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