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Here's What Key Metrics Tell Us About Synopsys (SNPS) Q1 Earnings
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Synopsys (SNPS - Free Report) reported $1.65 billion in revenue for the quarter ended January 2024, representing a year-over-year increase of 21.2%. EPS of $3.56 for the same period compares to $2.62 a year ago.
The reported revenue represents a surprise of +0.23% over the Zacks Consensus Estimate of $1.65 billion. With the consensus EPS estimate being $3.43, the EPS surprise was +3.79%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $296.99 million versus the five-analyst average estimate of $290.82 million. The reported number represents a year-over-year change of +22.5%.
Revenue- Total products revenue: $1.35 billion versus the five-analyst average estimate of $1.25 billion.
Revenue- Time-based products: $904.38 million versus the four-analyst average estimate of $894.31 million. The reported number represents a year-over-year change of +15.6%.
Revenue- Upfront products: $447.86 million versus the four-analyst average estimate of $393.85 million. The reported number represents a year-over-year change of +33%.
Revenue by segment- Software Integrity: $138.20 million versus the three-analyst average estimate of $141.91 million. The reported number represents a year-over-year change of +8.1%.
Revenue by segment- Design IP: $525.70 million compared to the $419.31 million average estimate based on three analysts.
Revenue by segment- Design Automation: $985.30 million versus $1.01 billion estimated by two analysts on average.
Adjusted operating income- Software Integrity: $24 million compared to the $22.85 million average estimate based on three analysts.
Adjusted operating income- Design Automation: $364.90 million versus $418.84 million estimated by two analysts on average.
Adjusted operating income- Design IP: $249.50 million versus the two-analyst average estimate of $129.12 million.
Shares of Synopsys have returned -0.2% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About Synopsys (SNPS) Q1 Earnings
Synopsys (SNPS - Free Report) reported $1.65 billion in revenue for the quarter ended January 2024, representing a year-over-year increase of 21.2%. EPS of $3.56 for the same period compares to $2.62 a year ago.
The reported revenue represents a surprise of +0.23% over the Zacks Consensus Estimate of $1.65 billion. With the consensus EPS estimate being $3.43, the EPS surprise was +3.79%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $296.99 million versus the five-analyst average estimate of $290.82 million. The reported number represents a year-over-year change of +22.5%.
- Revenue- Total products revenue: $1.35 billion versus the five-analyst average estimate of $1.25 billion.
- Revenue- Time-based products: $904.38 million versus the four-analyst average estimate of $894.31 million. The reported number represents a year-over-year change of +15.6%.
- Revenue- Upfront products: $447.86 million versus the four-analyst average estimate of $393.85 million. The reported number represents a year-over-year change of +33%.
- Revenue by segment- Software Integrity: $138.20 million versus the three-analyst average estimate of $141.91 million. The reported number represents a year-over-year change of +8.1%.
- Revenue by segment- Design IP: $525.70 million compared to the $419.31 million average estimate based on three analysts.
- Revenue by segment- Design Automation: $985.30 million versus $1.01 billion estimated by two analysts on average.
- Adjusted operating income- Software Integrity: $24 million compared to the $22.85 million average estimate based on three analysts.
- Adjusted operating income- Design Automation: $364.90 million versus $418.84 million estimated by two analysts on average.
- Adjusted operating income- Design IP: $249.50 million versus the two-analyst average estimate of $129.12 million.
View all Key Company Metrics for Synopsys here>>>Shares of Synopsys have returned -0.2% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.