Jan. 28 (Bloomberg) -- Check Point Software Technologies Ltd., the Israeli maker of network security gear, increased to the highest level since 2001 after fourth-quarter earnings exceeded analysts’ estimates.
Shares of the Tel Aviv-based company rose 3.8 percent to $65.93, the highest close since May 2001. Trading volume was more than twice the 90-day average, data compiled by Bloomberg show. Check Point had the second-biggest gain on the Bloomberg Israel-US Equity Index of the largest Israeli companies traded in New York, which advanced 0.9 percent after seven days of declines.
Check Point’s adjusted earnings for the fourth quarter of 2013 rose to 98 cents a share, the company said in a statement, surpassing a 95 cent average of 27 analyst estimates compiled by Bloomberg. Sales increased 5 percent $387.1 million in the quarter, also exceeding analyst projections. Revenue growth had slowed to 7.7 percent in 2012 from 19 percent in 2010. The company expanded its share buyback program.
“It appears, after a somewhat choppy period of growth for the company over the past few years, that brighter days are on the horizon,” Daniel Ives, an analyst at FBR Capital Markets & Co. who has a buy equivalent recommendation on the stock, said in a report today. Ives raised his price estimate on Check Point by 5.7 percent to $74.
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