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 Q1 Earnings: What's in Store?
Read MoreHide Full Article
Synopsys (SNPS - Free Report) is slated to report first-quarter fiscal 2022 results on Feb 16.
The company anticipates revenues between $1.25 billion and $1.28 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.26 billion, suggesting growth of 30.2% from the year-ago period.
Synopsys expects non-GAAP earnings between $2.35 and $2.40 per share. The Zacks Consensus Estimate of $2.37 earnings per share indicates an improvement of 55.9% year over year.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.2%.
Let’s see how things have shaped up before this announcement.
Synopsys’ fiscal first-quarter performance is likely to have benefited from the growing demand for its solid product portfolio. Increasing global design activity and customer engagements are likely to have been growth drivers.
Also, the ongoing shift to high-performance cloud computing due to the pandemic-induced remote working environment is expected to have aided demand for the company’s Intellectual Property (IP) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5.
The rising impact of AI, 5G, the Internet of Things, high-performance computing and the Cloud and automotive is anticipated to have boosted demand for SNPS’ advanced solutions during the quarter under review. Synopsys’ performance is likely to have gained from the growth in Custom Compiler, which is fueled by large deal wins in 5G, AI and server chip markets.
The strong adoption of interface and foundation IP solutions is expected to have boosted revenues for the company’s interface portfolio. Additionally, widespread contract wins and the increasing deployment of the Fusion Platform, including Fusion Compiler, are likely to have driven the to-be-reported quarter’s performance.
Synopsys’ partnership with industry leaders like Microsoft and Taiwan Semiconductor Manufacturing Company is expected to have accelerated the deployment of its cloud solutions, which might have aided the company’s top line during the quarter under review.
The company’s solid electronic design automation software partner base, which includes Advanced Micro Devices, Juniper Networks, Realtek, Toshiba and Wolfson, is likely to have served as a major revenue driver.
Increased design investments in Synopsys’ ARC processors by automotive companies despite pandemic-induced headwinds in the automotive space are an upside.
However, the partial resumption of normal activities is expected to have brought back certain expenditures, which were on hold during the lockdown and work-from-home period. This might have been a slight drag on margins.
Component supply constraints are also expected to have partially offset the benefits of the aforementioned factors. Apart from this, the heightening competition from the likes of Cadence Design Systems might have played a spoilsport.
Geopolitical challenges, coupled with uncertainties concerning restrictions over trade with Huawei Technologies, might have adversely impacted the overall business during the fiscal first quarter.
What Our Model Says
Our proven model does not predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Synopsys currently carries a Zacks Rank of #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Zscaler (ZS - Free Report) , NetApp (NTAP - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Zscaler carries a Zacks Rank #2 and has an Earnings ESP of +2.10%. The company is scheduled to report second-quarter fiscal 2022 results on Feb 24. Zscaler’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 52.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ZS’ second-quarter earnings is pegged at 11 cents per share, indicating year-over-year growth of 10%. The consensus mark for revenues stands at $242 million, suggesting a year-over-year increase of 54.1%.
NetApp is slated to report third-quarter fiscal 2022 results on Feb 23. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.09% at present. NetApp’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 9.8%.
The Zacks Consensus Estimate for NTAP’s quarterly earnings is pegged at $1.28 per share, suggesting a year-over-year improvement of 16.4%. NetApp’s quarterly revenues are estimated to increase 9.7% year over year to $1.61 billion.
Keysight currently carries a Zacks Rank #2 and has an Earnings ESP of +2.17%. The company is slated to report its first-quarter fiscal 2022 results on Feb 17. Keysight’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.1%.
The Zacks Consensus Estimate for Keysight’s first-quarter earnings stands at $1.57 per share, implying a year-over-year increase of 9.8%. KEYS is estimated to report revenues of $1.24 billion, which suggests growth of 5.3% from the year-ago quarter.
Image: Shutterstock
Synopsys (SNPS) to Report Q1 Earnings: What's in Store?
Synopsys (SNPS - Free Report) is slated to report first-quarter fiscal 2022 results on Feb 16.
The company anticipates revenues between $1.25 billion and $1.28 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.26 billion, suggesting growth of 30.2% from the year-ago period.
Synopsys expects non-GAAP earnings between $2.35 and $2.40 per share. The Zacks Consensus Estimate of $2.37 earnings per share indicates an improvement of 55.9% year over year.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.2%.
Let’s see how things have shaped up before this announcement.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote
Factors to Note Ahead of Q1 Results
Synopsys’ fiscal first-quarter performance is likely to have benefited from the growing demand for its solid product portfolio. Increasing global design activity and customer engagements are likely to have been growth drivers.
Also, the ongoing shift to high-performance cloud computing due to the pandemic-induced remote working environment is expected to have aided demand for the company’s Intellectual Property (IP) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5.
The rising impact of AI, 5G, the Internet of Things, high-performance computing and the Cloud and automotive is anticipated to have boosted demand for SNPS’ advanced solutions during the quarter under review. Synopsys’ performance is likely to have gained from the growth in Custom Compiler, which is fueled by large deal wins in 5G, AI and server chip markets.
The strong adoption of interface and foundation IP solutions is expected to have boosted revenues for the company’s interface portfolio. Additionally, widespread contract wins and the increasing deployment of the Fusion Platform, including Fusion Compiler, are likely to have driven the to-be-reported quarter’s performance.
Synopsys’ partnership with industry leaders like Microsoft and Taiwan Semiconductor Manufacturing Company is expected to have accelerated the deployment of its cloud solutions, which might have aided the company’s top line during the quarter under review.
The company’s solid electronic design automation software partner base, which includes Advanced Micro Devices, Juniper Networks, Realtek, Toshiba and Wolfson, is likely to have served as a major revenue driver.
Increased design investments in Synopsys’ ARC processors by automotive companies despite pandemic-induced headwinds in the automotive space are an upside.
However, the partial resumption of normal activities is expected to have brought back certain expenditures, which were on hold during the lockdown and work-from-home period. This might have been a slight drag on margins.
Component supply constraints are also expected to have partially offset the benefits of the aforementioned factors. Apart from this, the heightening competition from the likes of Cadence Design Systems might have played a spoilsport.
Geopolitical challenges, coupled with uncertainties concerning restrictions over trade with Huawei Technologies, might have adversely impacted the overall business during the fiscal first quarter.
What Our Model Says
Our proven model does not predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Synopsys currently carries a Zacks Rank of #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Zscaler (ZS - Free Report) , NetApp (NTAP - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Zscaler carries a Zacks Rank #2 and has an Earnings ESP of +2.10%. The company is scheduled to report second-quarter fiscal 2022 results on Feb 24. Zscaler’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 52.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ZS’ second-quarter earnings is pegged at 11 cents per share, indicating year-over-year growth of 10%. The consensus mark for revenues stands at $242 million, suggesting a year-over-year increase of 54.1%.
NetApp is slated to report third-quarter fiscal 2022 results on Feb 23. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.09% at present. NetApp’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 9.8%.
The Zacks Consensus Estimate for NTAP’s quarterly earnings is pegged at $1.28 per share, suggesting a year-over-year improvement of 16.4%. NetApp’s quarterly revenues are estimated to increase 9.7% year over year to $1.61 billion.
Keysight currently carries a Zacks Rank #2 and has an Earnings ESP of +2.17%. The company is slated to report its first-quarter fiscal 2022 results on Feb 17. Keysight’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.1%.
The Zacks Consensus Estimate for Keysight’s first-quarter earnings stands at $1.57 per share, implying a year-over-year increase of 9.8%. KEYS is estimated to report revenues of $1.24 billion, which suggests growth of 5.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.