- Full Fiscal Year Forecast:
- Adjusted EPS raised to $13.07 – $13.12 (previously $12.90 – $12.98; estimate $12.95)
- Revenue forecast set between $6.11 billion and $6.14 billion (previously $6.09 billion – $6.15 billion; estimate $6.13 billion)
- Fourth Quarter Forecast:
- Revenue expected between $1.61 billion and $1.64 billion (estimate $1.62 billion)
- Adjusted EPS forecasted at $3.27 – $3.32 (estimate $3.26)
- Third Quarter Results:
- Adjusted EPS: $3.43 (up from $2.88 year-over-year; estimate $3.28)
- Revenue: $1.53 billion (up 2.6% y/y; estimate $1.52 billion)
- Design Automation Revenue: $1.06 billion (up 5.8% y/y; estimate $1.1 billion)
- Design IP Revenue: $463.1 million (up 32% y/y; estimate $410.8 million)
- Adjusted Operating Income: $610.6 million (up 16% y/y; estimate $594.6 million)
- Adjusted Net Income: $535.5 million (estimate $511.4 million)
- Cash and Cash Equivalents: $1.84 billion
- Company Comments:
- Projected full-year revenue growth: ~15%
- Projected full-year non-GAAP EPS growth: ~24%
- Non-GAAP operating margin expected to expand by two points
- Success attributed to leadership products and execution
- Analyst Recommendations:
- 17 buys, 1 hold, 0 sells
Synopsys Inc on Smartkarma
Analyst coverage of Synopsys Inc on Smartkarma showcases positive sentiments from analysts like Baptista Research and Value Investors Club. In a recent report by Baptista Research, Synopsys demonstrated strong Q2 2024 performance with a 15% year-over-year revenue increase, reaching high-end guided range expectations. The non-GAAP operating margin saw a notable rise to 37.3%, with a 26% increase in non-GAAP EPS, leading Synopsys to boost its full-year revenue and non-GAAP EPS guidance.
Meanwhile, Value Investors Club‘s report recommends Synopsys as an attractive long-term investment, highlighting potential divestment of the Software Integrity business to enhance overall profitability. The EDA and IP divisions have been performing well, achieving adjusted operating margins exceeding 30%. This optimism is fueled by Synopsys’ solid growth in the first quarter of fiscal year 2024, reporting a 21% year-over-year revenue increase and significant improvements in non-GAAP operating margin and EPS.
A look at Synopsys Inc Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 1 | |
Growth | 4 | |
Resilience | 4 | |
Momentum | 4 | |
OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Synopsys Inc, the company appears to have a positive long-term outlook. With strong scores in Growth, Resilience, and Momentum, Synopsys Inc is positioned favorably for continued success in the future. These high scores indicate that the company has solid potential for expansion, the ability to withstand market challenges, and positive stock price momentum.
Synopsys, Inc. is a leading provider of electronic design automation solutions globally, catering to the needs of the electronics market. The company specializes in offering design technologies for advanced integrated circuits, electronic systems, and systems on a chip. Additionally, Synopsys provides consulting services to assist customers in streamlining their design processes and speeding up their time to market. With its strong Smart Scores in Growth, Resilience, and Momentum, Synopsys Inc is set to continue its path of success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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