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The company anticipates revenues between $1.63 billion and $1.66 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.65 billion, suggesting growth of 20.9% from the year-ago period's reported figure.
Synopsys expects non-GAAP earnings per share between $3.40 and $3.45. The Zacks Consensus Estimate of $3.43 per share indicates year-over-year growth of 30.9%.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.4%.
Let’s see how things have shaped up before the upcoming announcement.
Synopsys’ first-quarter result is likely to have benefited from the rising demand for its robust product portfolio. The continuous traction toward high-performance cloud computing due to the growing hybrid working environment is expected to have aided the demand for the company’s Intellectual Property (IP) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5 memory.
The expanding footprint of artificial intelligence (AI), the Internet of Things, 5G, high-performance computing, the cloud and automotive is likely to have increased the demand for Synopsys’ advanced solutions in the first quarter. The company is likely to have benefited from growth in Fusion Compiler, which is driven by large deal wins in the 5G, AI and server chip markets.
The increasing adoption of Synopsys.ai among the chip manufacturers and vendors is likely to have driven the top line during the to-be-reported quarter. The extended partnership with Intel for improving SNPS’ fabrication processes using the company's EDA, IP and multi-die systems is expected to have been acting as a catalyst in the quarter under review.
In the fiscal first quarter, the rising global design activity and user engagements are likely to have been Synopsys’ growth drivers. The growing adoption of interface and foundation IP solutions is likely to have boosted revenues for the interface portfolio of Synopsys. Additionally, widespread contract wins and the increasing adoption of the Fusion Platform, including Fusion Compiler, might drive the company’s fiscal first-quarter results.
Synopsys’ partnership with industry giants like Microsoft and Taiwan Semiconductor Manufacturing Company is likely to have boosted the deployment of its cloud solutions. This might have aided the company’s revenue during the quarter under review.
SNPS’ robust electronic design automation software partner base, which includes Juniper Networks, Realtek, Advanced Micro Devices, Toshiba and Wolfson, is likely to have served as a major revenue driver. Increased design investments in Synopsys’ ARC processors by automotive companies are also an upside. Moreover, the solid adoption of security solutions for interfaces, such as CXL, PCI Express and DDR, with more than 30 design wins across all market segments, is positive.
Nevertheless, the rising competition from the likes of Cadence Design Systems might have acted as a spoilsport for Synopsys. The tightening budget among corporations amid ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the benefits of the aforementioned factors.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Synopsys currently has an Earnings ESP of -0.21% and a Zacks Rank of 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, Inseego (INSG - Free Report) , Vertiv (VRT - Free Report) and NVIDIA (NVDA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Inseego has an Earnings ESP of +4.17% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on other two occasions, the average negative surprise being 150.42%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for INSG’s fourth-quarter loss per share is pegged at 48 cents per share, indicating a rise of 56.36% from the prior-year quarter. The consensus mark for revenues is pegged at $40.57 million, suggesting a year-over-year decrease of 23.34%.
Vertiv has an Earnings ESP of +1.90% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 3.95%.
The Zacks Consensus Estimate for VRT’s fourth-quarter earnings is pegged at 54 cents per share, suggesting growth of 92.86% from the prior-year quarter. The consensus mark for revenues is pegged at $1.89 billion, suggesting a year-over-year increase of 14.14%.
NVIDIA has an Earnings ESP of +3.67% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2024 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.99%.
The Zacks Consensus Estimate for NVDA’s fourth-quarter earnings is pegged at $4.54 per share, indicating a surge of 415.91% from the prior-year quarter. The consensus mark for revenues is pegged at $20.21 billion, suggesting a year-over-year increase of 234%.
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Synopsys (SNPS) to Report Q1 Earnings: What's in the Cards?
Synopsys (SNPS - Free Report) is slated to report first-quarter fiscal 2024 results on Feb 21, after market close.
The company anticipates revenues between $1.63 billion and $1.66 billion for the fiscal first quarter. The Zacks Consensus Estimate for the same is pegged at $1.65 billion, suggesting growth of 20.9% from the year-ago period's reported figure.
Synopsys expects non-GAAP earnings per share between $3.40 and $3.45. The Zacks Consensus Estimate of $3.43 per share indicates year-over-year growth of 30.9%.
The software company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.4%.
Let’s see how things have shaped up before the upcoming announcement.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote
Factors to Consider
Synopsys’ first-quarter result is likely to have benefited from the rising demand for its robust product portfolio. The continuous traction toward high-performance cloud computing due to the growing hybrid working environment is expected to have aided the demand for the company’s Intellectual Property (IP) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5 memory.
The expanding footprint of artificial intelligence (AI), the Internet of Things, 5G, high-performance computing, the cloud and automotive is likely to have increased the demand for Synopsys’ advanced solutions in the first quarter. The company is likely to have benefited from growth in Fusion Compiler, which is driven by large deal wins in the 5G, AI and server chip markets.
The increasing adoption of Synopsys.ai among the chip manufacturers and vendors is likely to have driven the top line during the to-be-reported quarter. The extended partnership with Intel for improving SNPS’ fabrication processes using the company's EDA, IP and multi-die systems is expected to have been acting as a catalyst in the quarter under review.
In the fiscal first quarter, the rising global design activity and user engagements are likely to have been Synopsys’ growth drivers. The growing adoption of interface and foundation IP solutions is likely to have boosted revenues for the interface portfolio of Synopsys. Additionally, widespread contract wins and the increasing adoption of the Fusion Platform, including Fusion Compiler, might drive the company’s fiscal first-quarter results.
Synopsys’ partnership with industry giants like Microsoft and Taiwan Semiconductor Manufacturing Company is likely to have boosted the deployment of its cloud solutions. This might have aided the company’s revenue during the quarter under review.
SNPS’ robust electronic design automation software partner base, which includes Juniper Networks, Realtek, Advanced Micro Devices, Toshiba and Wolfson, is likely to have served as a major revenue driver. Increased design investments in Synopsys’ ARC processors by automotive companies are also an upside. Moreover, the solid adoption of security solutions for interfaces, such as CXL, PCI Express and DDR, with more than 30 design wins across all market segments, is positive.
Nevertheless, the rising competition from the likes of Cadence Design Systems might have acted as a spoilsport for Synopsys. The tightening budget among corporations amid ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the benefits of the aforementioned factors.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Synopsys currently has an Earnings ESP of -0.21% and a Zacks Rank of 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, Inseego (INSG - Free Report) , Vertiv (VRT - Free Report) and NVIDIA (NVDA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Inseego has an Earnings ESP of +4.17% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on other two occasions, the average negative surprise being 150.42%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for INSG’s fourth-quarter loss per share is pegged at 48 cents per share, indicating a rise of 56.36% from the prior-year quarter. The consensus mark for revenues is pegged at $40.57 million, suggesting a year-over-year decrease of 23.34%.
Vertiv has an Earnings ESP of +1.90% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 3.95%.
The Zacks Consensus Estimate for VRT’s fourth-quarter earnings is pegged at 54 cents per share, suggesting growth of 92.86% from the prior-year quarter. The consensus mark for revenues is pegged at $1.89 billion, suggesting a year-over-year increase of 14.14%.
NVIDIA has an Earnings ESP of +3.67% and a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2024 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.99%.
The Zacks Consensus Estimate for NVDA’s fourth-quarter earnings is pegged at $4.54 per share, indicating a surge of 415.91% from the prior-year quarter. The consensus mark for revenues is pegged at $20.21 billion, suggesting a year-over-year increase of 234%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.