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Synopsys (SNPS) to Report Q1 Earnings: What's in the Offing?
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Synopsys (SNPS - Free Report) is slated to report first-quarter fiscal 2023 results on Feb 15.
The company anticipates revenues between $1.340 billion and $1.370 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.35 billion, suggesting growth of 6.5% from the year-ago period.
Synopsys expects non-GAAP earnings between $2.48 and $2.53 per share. The Zacks Consensus Estimate of $2.50 per share indicates an improvement of 4.2% year over year.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%.
Growing impact of artificial intelligence (AI), fifth-generation, the Internet of Things, high-performance computing, the Cloud and automotive is anticipated to have boosted demand for Synopsys’ advanced solutions during the first quarter fiscal 2023. The company is likely to have gained from growth in Fusion Compiler, which is fueled by the large deal wins in the 5G, AI and server chip markets.
During fiscal first-quarter, the increasing global design activity and customer engagements are likely to have been Synopsys’ growth drivers. Its first-quarter performance is likely to have benefited from the growing demand for its solid product portfolio.
The continuous shift to high-performance cloud computing due to the growing hybrid 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 memory. Synopsys expects total non-GAAP costs and expenses in the range of $875-$885 million for the first quarter of fiscal 2023.
Strong adoption of interface and foundation IP solutions are likely to have boosted revenues for SNPS’ interface portfolio. Additionally, widespread contract wins and the increasing deployment of the Fusion Platform, including Fusion Compiler, might drive the company’s fiscal first-quarter results.
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 are an upside. Besides, strong adoption of security solutions for interfaces, such as PCI Express, CXL and DDR, with more than 30 design wins across all market segments, is a positive. However, the heightened competition from the likes of Cadence Design Systems might have played a spoilsport for Synopsys.
What Our Model States
Our proven model does not conclusively predict an earnings beat for Synopsys 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. But that’s not the case here.
Synopsys has an Earnings ESP of 0.00% and a Zacks Rank #3. 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, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Inspired Entertainment (INSE - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +23.08% and sports a Zacks Rank #1. The company is expected to report its fourth-quarter 2022 results on Mar 1. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 10 cents per share, indicating 1100% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.8 million, suggesting a year-over-year increase of 94.7%.
American Eagle has an Earnings ESP of +1.40% and currently flaunts a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. American Eagle’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter.
Inspired Entertainment has an Earnings ESP of +17.72% and flaunts a Zacks Rank #1 at present. The company is likely to report fourth-quarter 2022 results on Mar 10. Inspired Entertainment’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 19%.
The Zacks Consensus Estimate for INSE’s quarterly earnings is pegged at 26 cents per share, suggesting a year-over-year increase of 620%. Its quarterly revenues are estimated to increase 3.6% year over year to $69.4 million.
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Synopsys (SNPS) to Report Q1 Earnings: What's in the Offing?
Synopsys (SNPS - Free Report) is slated to report first-quarter fiscal 2023 results on Feb 15.
The company anticipates revenues between $1.340 billion and $1.370 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.35 billion, suggesting growth of 6.5% from the year-ago period.
Synopsys expects non-GAAP earnings between $2.48 and $2.53 per share. The Zacks Consensus Estimate of $2.50 per share indicates an improvement of 4.2% year over year.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote
Factors to Note Ahead of Q1 Release
Growing impact of artificial intelligence (AI), fifth-generation, the Internet of Things, high-performance computing, the Cloud and automotive is anticipated to have boosted demand for Synopsys’ advanced solutions during the first quarter fiscal 2023. The company is likely to have gained from growth in Fusion Compiler, which is fueled by the large deal wins in the 5G, AI and server chip markets.
During fiscal first-quarter, the increasing global design activity and customer engagements are likely to have been Synopsys’ growth drivers. Its first-quarter performance is likely to have benefited from the growing demand for its solid product portfolio.
The continuous shift to high-performance cloud computing due to the growing hybrid 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 memory. Synopsys expects total non-GAAP costs and expenses in the range of $875-$885 million for the first quarter of fiscal 2023.
Strong adoption of interface and foundation IP solutions are likely to have boosted revenues for SNPS’ interface portfolio. Additionally, widespread contract wins and the increasing deployment of the Fusion Platform, including Fusion Compiler, might drive the company’s fiscal first-quarter results.
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 are an upside. Besides, strong adoption of security solutions for interfaces, such as PCI Express, CXL and DDR, with more than 30 design wins across all market segments, is a positive. However, the heightened competition from the likes of Cadence Design Systems might have played a spoilsport for Synopsys.
What Our Model States
Our proven model does not conclusively predict an earnings beat for Synopsys 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. But that’s not the case here.
Synopsys has an Earnings ESP of 0.00% and a Zacks Rank #3. 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, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Inspired Entertainment (INSE - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +23.08% and sports a Zacks Rank #1. The company is expected to report its fourth-quarter 2022 results on Mar 1. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 10 cents per share, indicating 1100% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.8 million, suggesting a year-over-year increase of 94.7%.
American Eagle has an Earnings ESP of +1.40% and currently flaunts a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. American Eagle’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter.
Inspired Entertainment has an Earnings ESP of +17.72% and flaunts a Zacks Rank #1 at present. The company is likely to report fourth-quarter 2022 results on Mar 10. Inspired Entertainment’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 19%.
The Zacks Consensus Estimate for INSE’s quarterly earnings is pegged at 26 cents per share, suggesting a year-over-year increase of 620%. Its quarterly revenues are estimated to increase 3.6% year over year to $69.4 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.