|July 23, 2014|
|12:57 EDT||PANW, CHKP, FTNT||Check Point Q2 results, guidance solid, says Wells Fargo|
Wells Fargo believes that Check Point (CHK) reported solid Q2 results and provided solid guidance, as its large deal metrics were particularly strong, according to Wells. The firm thinks the results show that spending trends in cyber security remain strong, boding well for cyber security companies Palo Alto (PANW), Fortinet (FTNT), and FireEye (FEYE). Wells keeps an Outperform rating on Check Point.
News For CHKP;PANW;FTNT From The Last 14 Days
|October 6, 2015|
|13:26 EDT||PANW, CHKP||Radware plunges after negative Q3 pre-announcement|
Shares of cybersecurity and application delivery solutions company Radware (RDWR) are plunging after the company announced preliminary third quarter results that were below previous guidance. WHAT'S NEW: On Monday evening, Radware announced preliminary adjusted earnings per share of 10c, well below its guidance of 23c-24c and analysts' consensus estimates of 24c. Radware also reported preliminary Q3 revenue of $48M, below its prior view of $57M-$59M and analysts' consensus estimates of $57.95M. WHAT'S NOTABLE. On the company's conference call discussing the preliminary results, the company noted that the mix between supporting and subscription sales to product sales was weighted much heavier than usual towards subscription and service contracts. As these sales are recognized over the life of the contract, the company recognized revenue of only $48M for the quarter. The weakness in the quarter came primarily from the U.S. carrier and service provider markets, said Roy Zisapel, the company's chief executive officer. The company noted that several large deals that were expected to be booked at the end of the quarter did not materialize. The company subsequently booked one of those deals and expects to book many of the remaining deals. On the call, the company said it continues to face weakness in China and FX headwinds in Brazil and Russia that impacted revenue. ANALYST TAKE: In a note to investors this morning, Oppenheimer analyst Ittai Kidron downgraded shares of Radware to Perform from Outperform, removing its $23 price target and cutting estimates for 2015 and 2016. The analyst, who put the note out before the conference call, said it suspects "the miss is tied to execution issues related to the inherently lumpy service provider business." Wells Fargo also downgraded Radware to Market Perform from Outperform. PRICE ACTION: Shares of Radware are sliding 21.59% to $13.58 in afternoon trading. OTHERS TO WATCH: Shares of other companies involved in cybersecurity are underperforming the broader market with FireEye (FEYE) down 2.95%, Palo Alto Networks (PANW) sliding 2.39%, Check Point (CHKP) lower by 3.48% and Imperva (IMPV) down 1.85%.
|October 5, 2015|
|10:27 EDT||CHKP||FireEye tumbles after competition worries spark downgrade|
The shares of IT security company FireEye (FEYE) are sinking after research firm Piper Jaffray downgraded the stock to Neutral from Outperform, warning that the company is facing increased competition and tough comparisons. WHAT'S NEW: The top five firewall vendors are now offering "sandbox" technology that is similar to FireEye's offering, Piper analyst Andrew Nowinski reported. Check Point's (CHKP) SandBlast technology, which is similar to FireEye's offering, has a 12.8% share of the market, the analyst stated. Meanwhile, Cisco (CSCO) has identified security as its top priority, and is taking a "software-centric" approach that appears to be "directed at FireEye," Nowinski believes. Additionally, FireEye faces tough comparisons and its valuation "leaves little room for error," according to the analyst, who set a $37 price target on the shares. PRICE ACTION: In early trading, FireEye fell 6% to about $31 per share while Check Point rose 0.8% to $81.16.
|06:11 EDT||PANW||Apple iOS users in China, Taiwan targeted by ad-focused malware|
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|October 2, 2015|
|15:14 EDT||PANW, FTNT, CHKP||As many as 4.6M Scottrade users' data exposed in breach, KrebsonSecurity says|
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|September 30, 2015|
|10:33 EDT||FTNT, PANW, CHKP||Battleground: Analysts agree Barracuda shares 'cheap,' diverge on ratings|
The shares of Barracuda Networks (CUDA) are falling after the company reported lower than expected revenue and provided weaker than expected guidance. Research firms Piper Jaffray and JPMorgan both said that the shares are cheap in the wake of their huge decline today, though Piper downgraded the shares and JPMorgan kept an Overweight rating on the stock. Barracuda provides IT security and storage solutions, primarily for small and medium businesses. WHAT'S NEW: Barracuda last night reported second quarter earnings per share of 10c, versus analysts' consensus estimate of 9c. The company's revenue, however, came in at $78.4M, below the consensus outlook of $78.7M. Moreover, the company lowered its fiscal 2016 EPS guidance to 34c-36c from 36c-41c. Analysts' consensus estimate was 39c. Barrcuda cut its full-year revenue guidance to $320M-$323M, from $325M-$330M. Analysts' consensus estimate was $325M. The company said that its Q2 results were negatively impacted by longer sales cycles in its Europe, Middle East, and Africa region and it warned that it "saw some evidence" of slowing growth in the storage market. It also stated that its gross billings came in below its expectations. ANALYST REACTION: Piper Jaffray analyst Andrew Nowinski responded to Barracuda's results by downgrading the stock to Neutral from Overweight. Although Barracuda blamed its lower than expected billings guidance on weakness in its storage business, its security billings increased only by high single digit percentage levels, the analyst stated. The shares are "cheap," but the valuation is not compelling enough to recommend the stock, contends Nowinski, who cut his price target for shares to $20 from $40. Barracuda was also downgraded at Macquarie and at Stephens this morning.Conversely, JPMorgan analyst Sterling Auty called Barracuda shares "too cheap to ignore." The company lowered its billings guidance partly due to worries about slowing storage market growth, as indicated by an industry report released last quarter, said Auty. However, the growth of Barracuda's storage business actually accelerated last quarter, reaching about 25%, the analyst stated. He believes that Barracuda's new guidance reflects the company's efforts to be "prudent." Auty cut his price target on the name to $30 from $42 but kept an Overweight rating on the shares. OTHERS TO WATCH: Other publicly traded companies in the IT security space include Check Point (CHKP), F5 Networks (FFIV), FireEye (FEYE), Fortinet (FTNT), Imperva (IMPV), Palo Alto (PANW), Proofpoint (PFPT), Qualys (QLYS) and Symantec (SYMC). PRICE ACTION: In early trading, Barracuda tumbled 33% to $15.90.
|08:02 EDT||PANW||Trustwave and Palo Alto announce strategic alliance|
Trustwave and Palo Alto announced a strategic alliance designed to bring next-generation managed security services to global, multi-national businesses and government agencies. Under the terms of the agreement, Trustwave has become a global member of the Palo Alto Networks NextWave partner program to provide managed security services for the Palo Alto Networks security platform.
|September 27, 2015|
|14:04 EDT||FTNT, PANW||Cybersecurity firms look prime for takeover, Barron's says|
Cybersecurity companies like Palo Alto Networks (PANW), Fortinet (FTNT), and FireEye (FEYE) are becoming increasingly-attractive takeover targets for a Cisco (CSCO) or IBM (IBM), and any future dip in their stocks could represent a buying opportunity, Barron's contends in its 'Technology Trader' column. Reference Link
|September 24, 2015|
|07:36 EDT||FTNT||Fortinet checks positive, says Oppenheimer|
After conducting checks on Fortinet, Oppenheimer says the checks indicate that the company's results could come in at least at the higher end of its guidance. The firm says that the company continues to benefit from a number of positive catalysts, including more large deals and increased demand for high-end products. The firm keeps a $55 price target and Outperform rating on the stock.