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Synopsys (SNPS) Reports Q2 Earnings: What Key Metrics Have to Say

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Synopsys (SNPS - Free Report) reported $1.39 billion in revenue for the quarter ended April 2023, representing a year-over-year increase of 9%. EPS of $2.54 for the same period compares to $2.50 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.38 billion, representing a surprise of +1.22%. The company delivered an EPS surprise of +2.83%, with the consensus EPS estimate being $2.47.

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: $241.14 million compared to the $224.98 million average estimate based on four analysts. The reported number represents a change of +10.2% year over year.
  • Revenue- Total products revenue: $1.15 billion versus $1.15 billion estimated by four analysts on average.
  • Revenue- Time-based products: $808.20 million versus the three-analyst average estimate of $824.46 million. The reported number represents a year-over-year change of +11.7%.
  • Revenue- Upfront products: $345.52 million compared to the $319.47 million average estimate based on three analysts. The reported number represents a change of +2.6% year over year.
View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have returned -1.4% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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