Check Point says cyberattacks against Israel are rising as it adjusts profit estimates

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Check Point Software Technologies has continued operations as planned despite the conflict and expects higher annual profits than previously assumed, according to a statement on Monday.

Gil Shwed, the CEO, said 98% of the customers are outside Israel and that the company has completed acquisitions and launched new technologies.

Speaking to analysts, Shwed said that even despite the sirens and reserve military draft of a few (about 5% of the headcount), the company can continue to operate as planned without interruptions. Shwed said that since Oct. 7, Check Point’s data showed an 185 rise in cyberattacks in Israel, with 52% aimed at the government.

Check Point overperformed estimates

Check Point surpassed third-quarter profit forecasts, boosted by double-digit revenue growth in subscriptions for its platform that offers protection across mobile, the cloud, and networks. The company earned 42.07 per diluted share (EPS), excluding one-off items in July and September.

The results showed a 17% increase from $1.77 a year earlier. Revenue grew by about 3% to hit $596 million, according to LSEG data.

Shwed told the news conference that a year ago, companies were looking at existing firewalls for longer instead of upgrading. Now, he contends that that has changed, saying that the last quarter shows the company is “in a very good trend of a positive change,” adding that he was optimistic about the business trend.

The times ahead seem promising for the company

Because of the changing trend, Check Point has raised its 2023 adjusted EPS estimate to $8.20-$8.40 from $7.70-$8.30 and changed the revenue forecast from an estimated $2.38-$2.437 billion to $2.340-$2.510 billion. Analysts expect an EPS of $8.16 on revenue of $2.41 billion.

Check Point sees the fourth quarter bringing in revenue of $636–$686 million and adjusted EPS of $2.35–$2.55, above analyst estimates.

Check Point said it brought back 2.48 million shares in the quarter, worth $325 million, as part of an ongoing $2 billion share buyback program. During the quarter, it paid $490 million to acquire cyber firm Perimeter 81.

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