SNPS Earnings Prediction
The chart below shows how SNPS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNPS sees a -2.05% change in stock price 10 days leading up to the earnings, and a -0.18% change 10 days following the report. On the earnings day itself, the stock moves by +1.24%. This data can give you a slight idea of what to expect for the next quarter's release.
SNPS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.64B
11.49%
7.23%
Gross Margin
76.83%
-4.29%
-4.77%
Operating Margin
22.81%
-21.59%
-15.77%
Net Margin
15.94%
-31.88%
-42.45%
EPS
7.13
216.89%
173.18%
No Data Available
SNPS Earnings Analysis
Synopsys Inc Corporation (SNPS.O) Earnings Conference Call
Positive
Revenue Milestone Achievement: In FY '24, we grew revenue 15% year-over-year and crossed the $6 billion mark, only three years after crossing the $4 billion mark, marking a significant achievement.
EPS Growth Expansion: We expanded the bottom line with EPS growing at a 24% CAGR over the last five years.
Strong Revenue Increase: Total revenue for the year was $6.13 billion, up 15% year-over-year with double-digit growth across all products and geographies.
Design Automation Revenue Growth: Design Automation segment revenue was $4.22 billion, up 12%, driven by strength in EDA software and hardware.
Design IP Revenue Growth: Design IP segment revenue was $1.91 billion, up 24%, driven by broad-based strength.
Negative
Customer Growth Decline: In FY '24, we experienced a decline in customer growth, with a net loss of 10% in our key segments compared to the previous year.
Cash Flow Decline: Operating cash flow decreased by 15% year-over-year, resulting in a cash flow of only $1.4 billion, down from $1.65 billion in FY '23.
Rising Costs Impact Margin: Total GAAP costs and expenses rose to $4.77 billion, leading to a significant reduction in operating margin to 38.5%.
Profitability Decline Despite Revenue Growth: Despite a revenue increase of 15%, our non-GAAP operating margin fell to 40%, indicating a decline in profitability.
Projected Revenue Growth Decline: The anticipated revenue growth for FY '25 is projected at only 10.1%, significantly lower than the previous year's growth rate of 15%.
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SNPS Earning Call Sentiment
Synopsys, Inc. (SNPS) Q4 2024 Earnings Call Transcript
1.0x
00:00
00:00
SNPS.O
2.42%Positive
Synopsys demonstrated strong financial performance with 15% revenue growth and a significant increase in EPS. The share repurchase program is a positive shareholder return strategy. Despite supply chain challenges and competitive pressures, the optimistic guidance and strategic acquisition of Ansys indicate potential growth. The Q&A section highlighted some uncertainties, particularly regarding China and U.S. semiconductor rules, but these were incorporated into guidance. Overall, the positive financial results and optimistic outlook outweigh the potential risks, suggesting a positive stock price movement in the short term.
