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Will Synopsys (SNPS) Deliver a Surprise in Q2 Earnings?
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Synopsys Inc. (SNPS - Free Report) is set to report second-quarter 2017 results on May 17. The company delivered a positive earnings surprise of 16.67% in the previous quarter. Let's see how things are shaping up for this announcement.
Factors at Play
Synopsys posted impressive first-quarter fiscal 2017 results. Revenues as well as earnings improved year over year, mainly on the back of higher adoption of Synopsys’ products and strength in hardware products.
Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. We believe the company’s recent product launches, acquisitions and deal wins will boost results, going ahead.
Moreover, unique intellectual properties and global support provided by the company is likely to drive its upcoming results. Additionally, the acquisition of Cigital and Codiscope will enable Synopsys to offer a comprehensive software security signoff solution to its customers.
However, competition from Cadence Design Systems Inc. (CDNS - Free Report) and Mentor Graphics Corp., a challenging technology spending environment and uncertainty regarding the exact time of realizing acquisition synergies keep us on the side-lines.
Our proven model does not conclusively show that Synopsyswill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Synopsys’ ESP is 0.00% since the Most Accurate estimate and the Zacks Consensus Estimate stand at 56 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Synopsys carries a Zacks Rank #2, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Snap Inc. (SNAP - Free Report) , with an Earnings ESP of +28.57% and a Zacks Rank #3.
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Will Synopsys (SNPS) Deliver a Surprise in Q2 Earnings?
Synopsys Inc. (SNPS - Free Report) is set to report second-quarter 2017 results on May 17. The company delivered a positive earnings surprise of 16.67% in the previous quarter. Let's see how things are shaping up for this announcement.
Factors at Play
Synopsys posted impressive first-quarter fiscal 2017 results. Revenues as well as earnings improved year over year, mainly on the back of higher adoption of Synopsys’ products and strength in hardware products.
Synopsys is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. We believe the company’s recent product launches, acquisitions and deal wins will boost results, going ahead.
Moreover, unique intellectual properties and global support provided by the company is likely to drive its upcoming results. Additionally, the acquisition of Cigital and Codiscope will enable Synopsys to offer a comprehensive software security signoff solution to its customers.
However, competition from Cadence Design Systems Inc. (CDNS - Free Report) and Mentor Graphics Corp., a challenging technology spending environment and uncertainty regarding the exact time of realizing acquisition synergies keep us on the side-lines.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. Price and EPS Surprise | Synopsys, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Synopsyswill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Synopsys’ ESP is 0.00% since the Most Accurate estimate and the Zacks Consensus Estimate stand at 56 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Synopsys carries a Zacks Rank #2, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +1.32% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Snap Inc. (SNAP - Free Report) , with an Earnings ESP of +28.57% and a Zacks Rank #3.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>