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Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Synopsys (SNPS - Free Report) reported $1.49 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 19.2%. EPS of $2.88 for the same period compares to $2.10 a year ago.
The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $1.48 billion. With the consensus EPS estimate being $2.73, the EPS surprise was +5.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Maintenance and service: $266.45 million versus the four-analyst average estimate of $245.71 million. The reported number represents a year-over-year change of +18.5%.
Revenue- Total products revenue: $1.22 billion versus the four-analyst average estimate of $1.24 billion.
Revenue- Upfront products: $297.97 million versus $364.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.
Revenue- Time-based products: $922.87 million versus the three-analyst average estimate of $868.67 million. The reported number represents a year-over-year change of +22.3%.
Revenue by segment- Design IP: $350.20 million compared to the $372.61 million average estimate based on two analysts.
Revenue by segment- Software Integrity: $132.90 million versus the two-analyst average estimate of $134.05 million.
Revenue by segment- Design Automation: $1 billion versus the two-analyst average estimate of $959.63 million.
Adjusted operating income- Software Integrity: $22.40 million versus $17.56 million estimated by two analysts on average.
Shares of Synopsys have returned -5.7% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Synopsys (SNPS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Synopsys (SNPS - Free Report) reported $1.49 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 19.2%. EPS of $2.88 for the same period compares to $2.10 a year ago.
The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $1.48 billion. With the consensus EPS estimate being $2.73, the EPS surprise was +5.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Maintenance and service: $266.45 million versus the four-analyst average estimate of $245.71 million. The reported number represents a year-over-year change of +18.5%.
- Revenue- Total products revenue: $1.22 billion versus the four-analyst average estimate of $1.24 billion.
- Revenue- Upfront products: $297.97 million versus $364.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.
- Revenue- Time-based products: $922.87 million versus the three-analyst average estimate of $868.67 million. The reported number represents a year-over-year change of +22.3%.
- Revenue by segment- Design IP: $350.20 million compared to the $372.61 million average estimate based on two analysts.
- Revenue by segment- Software Integrity: $132.90 million versus the two-analyst average estimate of $134.05 million.
- Revenue by segment- Design Automation: $1 billion versus the two-analyst average estimate of $959.63 million.
- Adjusted operating income- Software Integrity: $22.40 million versus $17.56 million estimated by two analysts on average.
View all Key Company Metrics for Synopsys here>>>Shares of Synopsys have returned -5.7% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.