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Synopsys (SNPS) to Report Q3 Earnings: What's in Store?
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Synopsys, Inc. (SNPS - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 21 after market close.
The company anticipates revenues between $1.51 billion and $1.54 billion for the fiscal third quarter. The Zacks Consensus Estimate is pegged at $1.53 billion, which suggests growth of 2.6% from the year-ago period's reported figure.
Synopsys expects non-GAAP earnings per share between $3.25 and $3.30. The Zacks Consensus Estimate for third-quarter earnings has remained unchanged at $3.26 per share over the past 60 days, which indicates year-over-year growth of 13.2%.
The software company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 3.1%.
Let’s see how things have shaped up before the upcoming announcement.
Synopsys’ third-quarter results are anticipated to reflect the growing demand for its comprehensive product portfolio. The increasing need for high-performance cloud computing, driven by the hybrid work environment, is expected to boost the demand for the company's Intellectual Property (“IP”) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5 memory.
The expanding applications of AI, the Internet of Things (IoT), 5G, high-performance computing, cloud technology and automotive sectors are likely to have spurred demand for Synopsys’ advanced solutions in the third quarter. Significant growth in the Fusion Compiler, propelled by major deals in the 5G, AI and server chip markets, is expected to be a key contributor to this demand.
The increased adoption of Synopsys.ai among chip manufacturers and vendors is likely to have driven top-line growth during the reported quarter. Additionally, the extended partnership with Intel, aimed at enhancing Synopsys' fabrication processes using the company's electronic design automation (EDA), IP and multi-die systems, is expected to play a pivotal role.
Global design activity and user engagement are anticipated to have been significant growth drivers for Synopsys in the fiscal third quarter. The rising adoption of the company's interface and foundation IP solutions is likely to have boosted revenues within Synopsys’ interface portfolio. Moreover, numerous contract wins and the growing adoption of the Fusion Platform, including the Fusion Compiler, are expected to positively impact the company’s third-quarter results.
Synopsys’ strategic partnerships with industry leaders such as Microsoft and Taiwan Semiconductor Manufacturing Company are likely to have enhanced the deployment of its cloud solutions, contributing to revenue growth during the quarter under review.
The robust base of Synopsys’ EDA software partners, including Juniper Networks, Realtek, Advanced Micro Devices, Toshiba and Wolfson, is expected to be a major revenue driver. Additionally, increased design investments in Synopsys’ ARC processors by automotive companies, as well as the strong adoption of security solutions for interfaces like CXL, PCI Express and DDR, with more than 30 design wins across various market segments, are expected to have positively influenced the company’s performance.
However, rising competition from companies such as Cadence Design Systems might have posed challenges for Synopsys. Moreover, tightening budgets among corporations due to ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the positive impacts of the aforementioned growth factors.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Synopsys this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though SNPS currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, which calls for a significant jump of 93.6% from the prior-year quarter’s reported figure. Shares of ANF have returned 73.5% in the year-to-date period.
Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have declined 45.9% in the year-to-date period.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +4.20% and carries a Zacks Rank #2 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 37 cents per share, which indicates growth of 48% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have declined 2.5% in the year-to-date period.
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Synopsys (SNPS) to Report Q3 Earnings: What's in Store?
Synopsys, Inc. (SNPS - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 21 after market close.
The company anticipates revenues between $1.51 billion and $1.54 billion for the fiscal third quarter. The Zacks Consensus Estimate is pegged at $1.53 billion, which suggests growth of 2.6% from the year-ago period's reported figure.
Synopsys expects non-GAAP earnings per share between $3.25 and $3.30. The Zacks Consensus Estimate for third-quarter earnings has remained unchanged at $3.26 per share over the past 60 days, which indicates year-over-year growth of 13.2%.
The software company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 3.1%.
Let’s see how things have shaped up before the upcoming announcement.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote
Factors to Note
Synopsys’ third-quarter results are anticipated to reflect the growing demand for its comprehensive product portfolio. The increasing need for high-performance cloud computing, driven by the hybrid work environment, is expected to boost the demand for the company's Intellectual Property (“IP”) solutions, such as Peripheral Component Interconnect Express 5.0 & 6.0, 800G Ethernet and DDR5 memory.
The expanding applications of AI, the Internet of Things (IoT), 5G, high-performance computing, cloud technology and automotive sectors are likely to have spurred demand for Synopsys’ advanced solutions in the third quarter. Significant growth in the Fusion Compiler, propelled by major deals in the 5G, AI and server chip markets, is expected to be a key contributor to this demand.
The increased adoption of Synopsys.ai among chip manufacturers and vendors is likely to have driven top-line growth during the reported quarter. Additionally, the extended partnership with Intel, aimed at enhancing Synopsys' fabrication processes using the company's electronic design automation (EDA), IP and multi-die systems, is expected to play a pivotal role.
Global design activity and user engagement are anticipated to have been significant growth drivers for Synopsys in the fiscal third quarter. The rising adoption of the company's interface and foundation IP solutions is likely to have boosted revenues within Synopsys’ interface portfolio. Moreover, numerous contract wins and the growing adoption of the Fusion Platform, including the Fusion Compiler, are expected to positively impact the company’s third-quarter results.
Synopsys’ strategic partnerships with industry leaders such as Microsoft and Taiwan Semiconductor Manufacturing Company are likely to have enhanced the deployment of its cloud solutions, contributing to revenue growth during the quarter under review.
The robust base of Synopsys’ EDA software partners, including Juniper Networks, Realtek, Advanced Micro Devices, Toshiba and Wolfson, is expected to be a major revenue driver. Additionally, increased design investments in Synopsys’ ARC processors by automotive companies, as well as the strong adoption of security solutions for interfaces like CXL, PCI Express and DDR, with more than 30 design wins across various market segments, are expected to have positively influenced the company’s performance.
However, rising competition from companies such as Cadence Design Systems might have posed challenges for Synopsys. Moreover, tightening budgets among corporations due to ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the positive impacts of the aforementioned growth factors.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Synopsys this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though SNPS currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.40% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, which calls for a significant jump of 93.6% from the prior-year quarter’s reported figure. Shares of ANF have returned 73.5% in the year-to-date period.
Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have declined 45.9% in the year-to-date period.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +4.20% and carries a Zacks Rank #2 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 37 cents per share, which indicates growth of 48% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have declined 2.5% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.