This week's edition of Options Spotlight takes a look at Check Point Software Technologies (CHKP: sentiment, chart, options). The company provides security software and appliances for corporate networks and service providers, according to Hoover's. Check Point's products verify remote users, control access, and block viruses. The company also offers products that enable users to set up virtual private networks for secure internal and remote communications, as well as bandwidth management, network performance, and availability applications. Its ZoneAlarm products protect consumers from hackers, identity theft, and spyware. Check Point also offers services such as consulting, integration, maintenance, and training.
At the end of April, Check Point Software Technologies reported higher first-quarter net profit, beating analysts' estimates. Excluding one-time items, Check Point earned 45 cents per share in the first quarter, up from 43 cents per share a year earlier. Revenue rose to $195 million from $191.6 million. Analysts had expected a profit of 43 cents per share on revenue of $199.9 million.
Looking ahead, the company estimated Check Point would earn 41 to 49 cents per share, excluding one-time items, in the second quarter, on revenue of $205 million to $230 million. For the full year, the company forecast $1.85 to $1.95 per share, excluding one-time items, on revenue of $860 million to $920 million. The consensus estimate is for 45 cents per share on revenue of $211 million in the second quarter, and $1.85 a share on revenue of $858 million for the full year.
In the Options Spotlight, I shine a light on what's happening in the options world. In the case of the Check Point Software Technologies, put activity has been brisk on the shares as investors attempt to call a top to the security's uptrend. Has this stock's rally finally reached an end? For a closer look at Check Point and its sentiment backdrop, please click on the video button below.
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