April 23 (Bloomberg) -- Check Point Software Technologies Ltd., the world’s second-largest maker of security network equipment, headed for the biggest decline since 2008 on concern earnings growth will slow.
Shares of the Tel Aviv-based company dropped 8.1 percent to $58.86 at 1:28 p.m. in New York, set for the steepest retreat since Oct. 15, 2008.
Check Point said first-quarter product licenses revenue rose 5 percent from last year after growing 13 percent in 2011, according to a Marketwire statement.
The company reported adjusted earnings of 74 cents per share, beating the 72-cent median estimate of 27 analysts surveyed by Bloomberg. Check Point reaffirmed its forecast for the year, Chief Executive Officer Gil Shwed said today in the earnings call.
“Investors likely are concerned with full-year 2012 guidance being kept intact rather than upped, and product license revenue growth of 5 percent year-on-year potentially indicating decelerating growth in 2012,” Shaul Eyal, an analyst at Oppenheimer & Co. in New York, wrote in an e-mailed report today.
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