We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synopsys (SNPS) to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Synopsys, Inc. (SNPS - Free Report) is slated to release third-quarter fiscal 2018 results on Aug 22.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive earnings surprise of 7.8%.
In the last reported quarter, the company’s bottom line came in line with the Zacks Consensus Estimate while revenues beat the same. The results marked year-over-year improvement.
For the third quarter, the company estimates revenues in the range of $760-$785 million and earnings per share in the range of 89-93 cents. The Zacks Consensus Estimate for revenues and earnings per share is pegged at $774.6 million and 92 cents, respectively.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Synopsys is benefiting from robust performance of all the product groups. Growth in semiconductor sector will be accretive for the top line of this vendor of electronic design automation (EDA) software for the semiconductor and electronics industries.
The company is positive about its EDA design solutions, which are helping in designing of new artificial intelligence (AI) engines. Notably, its newly launched Fusion Technology received accolades from Samsung Electronics, STMicroelectronics, Toshiba and Ansys.
During the quarter, Synopsys announced that a host of its solutions has been selected by Arbe Robotics for its patented imaging radar meant for advanced driver assistance systems (ADAS) and autonomous vehicles.
Synopsys’s continued focus on introducing products, acquisitions and deal wins is a key growth driver. Furthermore, unique intellectual properties and global support provided by the company are likely to drive results. We note that the company’s acquisitions are helping it to access new market segments, enriching its product portfolio and contributing to revenues.
However, increasing costs and expenses are an overhang on margins. Additionally, uncertainty regarding the exact time of realizing acquisition synergies and rising competition from the likes of Cadence Design Systems are other 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. Zacks Rank #4 (Sell) or #5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Synopsys has an Earnings ESP of +1.09% and carries a Zacks Rank #3, which indicates a likely positive surprise.
Other Key Picks
Here are some other stocks, which you may also consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Hewlett Packard Enterprise Company (HPE - Free Report) with an Earnings ESP of +3.65% and a Zacks Rank #3.
HP Inc (HPQ - Free Report) with an Earnings ESP of +6.52% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Synopsys (SNPS) to Report Q3 Earnings: What's in the Cards?
Synopsys, Inc. (SNPS - Free Report) is slated to release third-quarter fiscal 2018 results on Aug 22.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive earnings surprise of 7.8%.
In the last reported quarter, the company’s bottom line came in line with the Zacks Consensus Estimate while revenues beat the same. The results marked year-over-year improvement.
For the third quarter, the company estimates revenues in the range of $760-$785 million and earnings per share in the range of 89-93 cents. The Zacks Consensus Estimate for revenues and earnings per share is pegged at $774.6 million and 92 cents, respectively.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Synopsys is benefiting from robust performance of all the product groups. Growth in semiconductor sector will be accretive for the top line of this vendor of electronic design automation (EDA) software for the semiconductor and electronics industries.
The company is positive about its EDA design solutions, which are helping in designing of new artificial intelligence (AI) engines. Notably, its newly launched Fusion Technology received accolades from Samsung Electronics, STMicroelectronics, Toshiba and Ansys.
During the quarter, Synopsys announced that a host of its solutions has been selected by Arbe Robotics for its patented imaging radar meant for advanced driver assistance systems (ADAS) and autonomous vehicles.
Synopsys’s continued focus on introducing products, acquisitions and deal wins is a key growth driver. Furthermore, unique intellectual properties and global support provided by the company are likely to drive results. We note that the company’s acquisitions are helping it to access new market segments, enriching its product portfolio and contributing to revenues.
However, increasing costs and expenses are an overhang on margins. Additionally, uncertainty regarding the exact time of realizing acquisition synergies and rising competition from the likes of Cadence Design Systems are other concerns.
Synopsys, Inc. Price, Consensus and EPS Surprise
Synopsys, Inc. Price, Consensus and EPS Surprise | Synopsys, Inc. Quote
What Our Model Says
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. Zacks Rank #4 (Sell) or #5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Synopsys has an Earnings ESP of +1.09% and carries a Zacks Rank #3, which indicates a likely positive surprise.
Other Key Picks
Here are some other stocks, which you may also consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Splunk Inc. with an Earnings ESP of +57.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hewlett Packard Enterprise Company (HPE - Free Report) with an Earnings ESP of +3.65% and a Zacks Rank #3.
HP Inc (HPQ - Free Report) with an Earnings ESP of +6.52% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>