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Unveiling Synopsys (SNPS) Q2 Outlook: Wall Street Estimates for Key Metrics

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In its upcoming report, Synopsys (SNPS - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $3.03 per share, reflecting an increase of 19.3% compared to the same period last year. Revenues are forecasted to be $1.51 billion, representing a year-over-year increase of 8.4%.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Synopsys metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenue- Maintenance and service' will reach $244.73 million. The estimate points to a change of +1.5% from the year-ago quarter.

The average prediction of analysts places 'Revenue- Upfront products' at $323.63 million. The estimate suggests a change of -6.3% year over year.

Based on the collective assessment of analysts, 'Revenue- Time-based products' should arrive at $929.87 million. The estimate indicates a year-over-year change of +15.1%.

The consensus estimate for 'Revenue by segment- Software Integrity' stands at $133.70 million. The estimate points to a change of +1.2% from the year-ago quarter.

View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have experienced a change of +9.5% in the past month compared to the +5% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), SNPS is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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