- Synopsys re-evaluates its 3Q revenue forecast to be between $1.51 billion and $1.54 billion.
- The company anticipates an adjusted EPS ranging from $3.25 to $3.30, which surpasses the previous estimate of $3.20.
- Synopsys’ revenue forecast for the year is modified to be within the spectrum of $6.09 billion and $6.15 billion, previously it was predicted to lie between $6.06 billion and $6.12 billion.
- The adjusted annual EPS is projected to be between $12.90 and $12.98, previously it was predicted to be within the scope of $12.86 and $12.94.
- In Q2, the adjusted EPS stood at $3.00, marking an increase from the $2.54 y/y.
- The Q2 revenue amounted to $1.45 billion, indicating a 4.3% y/y augmentation.
- Design Automation revenue soared to $1.05 billion in Q2.
- Conversely, Design IP revenue slightly failed to meet expectations; it was $399.8 million against the estimated $426.5 million.
- Adjusted operating income reflected a positive performance with $543.0 million, indicating a 17% y/y increase.
- Synopsys reported an adjusted net income of $466.9 million for Q2.
- The cash and cash equivalents balance for the time amounted to $1.50 billion.
- Based on strong execution and sustained business momentum, full-year targets for both revenue and non-GAAP EPS have been raised.
- Synopsys plans to make an acquisition of Ansys to empower technology innovators with essential silicon to systems design solutions. This proposed acquisition is approved by Ansys shareholders.
- Synopsys earned 17 buys, 1 hold, and 0 sells.
Synopsys Inc on Smartkarma
Analysts on Smartkarma have been closely monitoring Synopsys Inc. and providing valuable insights for investors. Value Investors Club recommended Synopsys as a good long-term investment, suggesting that the divestment of the Software Integrity business could enhance overall profitability. With the EDA and IP divisions performing well and boasting adjusted operating margins of over 30%, the company appears to be on a solid growth trajectory.
Baptista Research also shared positive sentiments about Synopsys, highlighting its strong financial performance. In their reports, Synopsys was praised for its robust revenue growth, reaching $1.65 billion in the first quarter of fiscal year 2024. Moreover, non-GAAP operating margins increased to 38.7%, and non-GAAP EPS showed a significant year-over-year rise of 36%. The company’s ability to deliver consistent growth and innovative features like the GenAI platform has positioned it well for future success.
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, Synopsys Inc shows a promising long-term outlook. With high scores in Growth, Resilience, and Momentum, the company appears well-positioned for future success. Synopsys is known for providing electronic design automation solutions to the global electronics market. Their focus on advanced integrated circuits and systems on a chip aligns with industry trends, contributing to their strong Growth score. Additionally, their Resilience and Momentum scores indicate a stable and potentially thriving business environment.
Despite lower scores in Value and Dividend factors, Synopsys’s core business model and market positioning suggest that the company’s growth prospects outweigh these concerns. Investors looking for a technology company with a solid track record and potential for long-term success may find Synopsys Inc an appealing investment opportunity based on its overall Smartkarma Smart Scores.
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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