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What's in the Cards for Synopsys (SNPS) in Q1 Earnings?
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Synopsys Inc. (SNPS - Free Report) is set to release first-quarter fiscal 2018 results on Feb 21. The company has a decent earnings surprise history, having beaten the Zacks Consensus Estimate thrice in the trailing four quarters and delivering an average positive surprise of 10.97%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Synopsys, a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries, has been focusing on introduction of products and inorganic growth, which are expected boost revenues.
The company’s acquisitions have helped it to access new market segments, enriching its product portfolio. These additions have also contributed to revenues.
Notably, the company’s recent acquisition of Kilopass Technology has strengthened its one-time programmable (OTP) intellectual property (IP) portfolio. Synopsys also completed the acquisition of Black Duck Software in December 2017. These acquisitions are anticipated to boost Synopsys’ top line.
Also, Synopsys’ time-based license revenue model is impressive. It ensures effective renting of the software rather than paying a one-time upfront license fee. Notably, this revenue model provides better visibility and predictability.
However, escalating costs and expenses, which are dampening margins are headwinds. Additionally, uncertainty regarding the exact time of realizing acquisition synergies and increasing competition from the likes of Cadence Design Systems Inc. (CDNS - Free Report) and Mentor Graphics are concerns.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
Synopsys has a Zacks Rank #4 and an Earnings ESP of 0.00%. This indicates that the company is unlikely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With a Favorable Combination
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.
MINDBODY has an Earnings ESP of +50.00% and a Zacks Rank #3.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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What's in the Cards for Synopsys (SNPS) in Q1 Earnings?
Synopsys Inc. (SNPS - Free Report) is set to release first-quarter fiscal 2018 results on Feb 21. The company has a decent earnings surprise history, having beaten the Zacks Consensus Estimate thrice in the trailing four quarters and delivering an average positive surprise of 10.97%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Synopsys, a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries, has been focusing on introduction of products and inorganic growth, which are expected boost revenues.
The company’s acquisitions have helped it to access new market segments, enriching its product portfolio. These additions have also contributed to revenues.
Notably, the company’s recent acquisition of Kilopass Technology has strengthened its one-time programmable (OTP) intellectual property (IP) portfolio. Synopsys also completed the acquisition of Black Duck Software in December 2017. These acquisitions are anticipated to boost Synopsys’ top line.
Also, Synopsys’ time-based license revenue model is impressive. It ensures effective renting of the software rather than paying a one-time upfront license fee. Notably, this revenue model provides better visibility and predictability.
However, escalating costs and expenses, which are dampening margins are headwinds. Additionally, uncertainty regarding the exact time of realizing acquisition synergies and increasing competition from the likes of Cadence Design Systems Inc. (CDNS - Free Report) and Mentor Graphics are concerns.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. Price and EPS Surprise | Synopsys, Inc. Quote
What the Zacks Model Unveils
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
Synopsys has a Zacks Rank #4 and an Earnings ESP of 0.00%. This indicates that the company is unlikely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With a Favorable Combination
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.
Castlight Health (CSLT - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MINDBODY has an Earnings ESP of +50.00% and a Zacks Rank #3.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>