Check Point Software Technologies Ltd. CHKPis scheduled to report first-quarter 2018 results on Apr 25. The question lingering on investors’ minds is whether this provider of information technology (IT) security solutions can deliver a positive surprise.
Last quarter, the company delivered a positive earnings surprise of 4.
Let's see how things are shaping up for this announcement.
Factors Likely to Drive Results
Check Point continues to gain from strong demand for its cyber security solutions. Rapid adoption of Check Point’s data-center appliances and continued enhancement in data-center product lines are anticipated to provide adequate support to revenue growth.
Notably, during the soon-to-be-reported quarter, the company unveiled three new types of “Smart-1 security management appliances” meant for Gen V (5th generation) cyber protection. Check Point also announced the “CloudGuard product family” targeting Gen V cyber threats.
Additionally, the company collaborated with Orange Cyberdefense. Per the agreement, Check Point Sandblast Mobile technology will be used for the development of Orange Mobile Threat Protection.
However, ongoing issues related to the changes it made in its U.S. sales force makes us skeptical about the company’s near-term performance. Per management, its fourth-quarter revenues were hurt by significant changes made in U. S. sales force that has not yet reached full potential. This might continue to affect financials for some time now.