Synopsys Scheduled to Announce Q1 Earnings on February 25th
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy SNPS?
Source: seekingalpha
- Earnings Announcement: Synopsys (SNPS) is set to release its Q1 2023 earnings on February 25th after market close, with consensus estimates predicting an EPS of $3.56 and revenue of $2.39 billion, indicating strong market interest in its performance.
- Historical Performance: Over the past two years, Synopsys has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating the company's stability in profitability and building market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 11 upward revisions and 4 downward revisions, while revenue estimates have experienced 5 upward and 9 downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Industry Focus: JPMorgan has highlighted Nvidia, Broadcom, and Micron as its favorite chip stocks, indicating ongoing market interest in the semiconductor sector, while ARK Invest is increasing its positions in Synopsys, showcasing its potential in the AI space.
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Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 440.720
Low
500.00
Averages
565.64
High
602.00
Current: 440.720
Low
500.00
Averages
565.64
High
602.00
About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Synopsys Scheduled to Announce Q1 Earnings on February 25th
- Earnings Announcement: Synopsys (SNPS) is set to release its Q1 2023 earnings on February 25th after market close, with consensus estimates predicting an EPS of $3.56 and revenue of $2.39 billion, indicating strong market interest in its performance.
- Historical Performance: Over the past two years, Synopsys has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating the company's stability in profitability and building market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 11 upward revisions and 4 downward revisions, while revenue estimates have experienced 5 upward and 9 downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Industry Focus: JPMorgan has highlighted Nvidia, Broadcom, and Micron as its favorite chip stocks, indicating ongoing market interest in the semiconductor sector, while ARK Invest is increasing its positions in Synopsys, showcasing its potential in the AI space.
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Synopsys Scheduled to Announce Q1 Earnings on February 25th
- Earnings Announcement: Synopsys (SNPS) is set to release its Q1 2023 earnings on February 25th after market close, with consensus estimates predicting an EPS of $3.56 and revenue of $2.39 billion, indicating strong market interest in its performance.
- Historical Performance: Over the past two years, Synopsys has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating the company's stability in profitability and building market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 11 upward revisions and 4 downward revisions, while revenue estimates have experienced 5 upward and 9 downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Industry Focus: JPMorgan has highlighted Nvidia, Broadcom, and Micron as its favorite chip stocks, indicating ongoing market interest in the semiconductor sector, while ARK Invest is increasing its positions in Synopsys, showcasing its potential in the AI space.
See More
Stock Movers: Nvidia, Paramount, First Solar, Workday, Axon, HP Inc., Lucid, and Others
- Stock Market Movement: Stock futures were rising on Wednesday, indicating positive investor sentiment.
- Response to Political Events: Investors appeared to overlook President Donald Trump’s State of the Union address, focusing instead on market trends.
See More
Nvidia Earnings to Impact European Tech Stocks
- Earnings Impact Expectations: Nvidia's upcoming earnings report is viewed as a barometer for the global AI investment cycle, with strong guidance potentially boosting European tech stocks, particularly in semiconductors and infrastructure.
- Equipment Demand Outlook: A robust outlook from Nvidia could drive demand for ASML, a key supplier of equipment necessary for producing Nvidia's advanced AI chips, thereby expanding semiconductor capacity further.
- Market Sensitivity: BESI, a semiconductor equipment provider, is highly sensitive to changes in Nvidia's demand; strong GPU demand highlighted in Nvidia's earnings could support ongoing investment in packaging technologies.
- Industry Sentiment Volatility: Should Nvidia's results indicate a slowdown in growth, it may trigger a reassessment of sentiment across the semiconductor sector, impacting companies like Infineon and STMicroelectronics significantly.
See More
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- Market Recovery: Stocks made a significant recovery on Tuesday, nearly offsetting the losses experienced on Monday.
- Investor Sentiment: The rebound indicates a shift in investor sentiment following a period of decline.
- Economic Indicators: The recovery may be influenced by various economic indicators that are being closely monitored by analysts.
- Future Outlook: Analysts are assessing whether this trend will continue or if further volatility is expected in the market.
See More
AMD and Meta Strike $60 Billion AI Chip Deal
- Strategic Partnership: AMD's agreement with Meta is projected to generate over $60 billion in sales, with Meta committing to purchase 6 gigawatts of GPUs, each gigawatt potentially worth double-digit billions, significantly enhancing AMD's competitive position in the AI market.
- Equity Incentive Structure: The deal allows Meta to acquire nearly 10% of AMD's equity upon meeting certain milestones, which, while potentially dilutive to shareholders, is expected to enhance the company's long-term earnings capacity through increased investment.
- Positive Market Reaction: Following the announcement, AMD's stock surged over 10%, and if this gain holds through year-end, it would turn AMD's annual performance positive, indicating market optimism regarding this strategic collaboration.
- Competitive Landscape Insight: Despite the strong partnership with Meta, analysts highlight that Nvidia continues to dominate in technology and market share, suggesting that AMD's equity dilution strategy may reflect its weaker competitive position in the industry.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
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