Results Summary1  Record quarterly revenue of $1.636 billion, up approximately 11% year over year (YoY), exceeding the mid-point of guidance. Quarterly GAAP earnings per diluted share (EPS) of $1.79; non-GAAP EPS of $3.40, up approximately 13% YoY, exceeding guidance. Achieved record full-year 2024 revenue of $6.127 billion, up approximately 15% YoY, while improving non-GAAP operating margin and delivering approximately 25% non-GAAP EPS growth. Expecting to deliver double digit revenue growth in 2025 while ...

Synopsys (SNPS) is scheduled to report fourth-quarter fiscal 2024 results on Dec. 4, after market close.Synopsys expects non-GAAP earnings per share between $3.27 and $3.32. The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pinned at $3.29 per share, which indicates a year-over-year increase of 3.8%.The company anticipates revenues between $1.614 billion and $1.644 billion for the fiscal fourth quarter. The Zacks Consensus Estimate is pegged at $1.63 billion, which suggests growth of 2.1% f ...

Core Insights - Synopsys (SNPS) is expected to report quarterly earnings of $3.29 per share, reflecting a year-over-year increase of 3.8% [1] - Anticipated revenues for the quarter are projected to be $1.63 billion, indicating a 2.1% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Projections - Analysts estimate 'Revenue- Maintenance and service' at $249.31 million, a decrease of 10.9% from the previous year [5] - 'Revenue- Total products revenue' is projected to reach $1.38 billion, reflecting a year-over-year increase of 4.6% [5] - Estimated 'Revenue by segment- Design IP' is $537.96 million, indicating a 4.7% increase from the year-ago quarter [5] - 'Revenue by segment- Design Automation' is expected to be $1.09 billion, showing a year-over-year increase of 14.6% [6] - 'Revenue- Upfront products' is forecasted at $475.29 million, reflecting a 5.8% increase year over year [6] - 'Revenue- Time-based products' is projected to reach $910.83 million, indicating a 4.7% increase from the prior-year quarter [6] Stock Performance - Over the past month, Synopsys shares have returned +2.1%, compared to a +3.8% change in the Zacks S&P 500 composite [7] - Currently, SNPS holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the overall market in the near future [7]

Core Insights - Synopsys, Inc. has purchased 90 MW of solar energy from the Millers Branch Solar Facility in Texas, facilitated by the Net Zero Consortium for Buyers (NZCB) [1][2] - This purchase is part of Synopsys' strategy to meet its emissions reduction targets approved by the Science Based Targets initiative (SBTi) [2][4] - The Millers Branch project is expected to support the increasing energy demands in the ERCOT region, particularly due to the rise of large-scale computing facilities [3][4] Group 1: Synopsys' Renewable Energy Strategy - Synopsys aims for a 55% reduction in scope 1 and 2 greenhouse gas emissions by 2032, with investments in renewable energy projects like Millers Branch Solar [4] - The company previously engaged in a 15 MW wind offtake through NZCB in 2021, showcasing a commitment to renewable energy procurement [2][4] - The NZCB platform has facilitated aggregated virtual power purchase agreements (VPPAs) for renewable energy credits, contributing to SR Inc's goal of achieving 1 GW of new renewable energy capacity by year-end [4] Group 2: Industry Implications - The procurement by Synopsys sets a precedent for other technology companies to follow, especially as electricity demands rise due to AI innovations [3] - The Millers Branch facility is expected to be operational in the fourth quarter of 2026, contributing to the shift in power generation in Texas [3] - SR Inc's NZCB aims to create favorable renewable energy transactions for corporate buyers, promoting a profitable path to Net Zero emissions [6]

Core Insights - Synopsys Inc. has a forward 12-month price-to-earnings (P/E) ratio of 36.76, which is significantly higher than the Zacks Computer - Software industry average of 33.22, raising concerns about the justification of its premium valuation in the current market [1][3]. Year-to-Date Performance - Year-to-date, Synopsys shares have only increased by 6.5%, underperforming compared to the Technology Select Sector SPDR Fund (XLK) which is up 21.8% and the S&P 500 which has gained 25.9% [3][4]. - Compared to competitors, Cadence Design Systems and Arm Holdings have seen significant stock price increases of 81.2% and 11.1% respectively, indicating Synopsys' relative weakness in the market [4]. Revenue Growth Concerns - In the third quarter of fiscal 2024, Synopsys' core Design Automation segment reported a revenue increase of only 6% year-over-year to $1.06 billion, a significant slowdown from previous years' double-digit growth [5][6]. - The slowdown in this segment raises concerns about Synopsys' ability to maintain its competitive edge, particularly as semiconductor companies reduce R&D spending amid economic uncertainties [6]. Competitive Pressures - Synopsys faces rising competitive pressure from Cadence Design Systems, which is expanding its product portfolio and focusing on AI-driven and high-performance computing applications [8]. - Arm Holdings poses a significant threat with its strong position in chip architecture licensing, potentially limiting Synopsys' market penetration and revenue opportunities [9]. - The combined competitive pressures from Cadence and Arm necessitate increased R&D spending and strategic partnerships for Synopsys, which could lead to higher operational costs and narrower profit margins [10]. Conclusion - Given the slowing growth in its core segment, increasing competitive pressures, and an above-average P/E ratio, the outlook for Synopsys appears uncertain, making it difficult to justify holding the stock at this time [11].

The Platform Helps Meet PPA Goals and Accelerate Time-to-MarketSEOUL, South Korea, Nov. 11, 2024 /PRNewswire/ -- SEMIFIVE, a leading design solution provider and pioneer of platform-based custom silicon solutions, today announced their collaboration with Synopsys to develop a cutting-edge high-performance computing (HPC) platform integrating SEMIFIVE's CPU chiplet with a third-party I/O chiplet into a unified package. SEMIFIVE's HPC chiplet platform will offer notable advantages over traditional chiplet pla ...

SUNNYVALE, Calif., Oct. 29, 2024 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced it will report results for the fourth quarter and fiscal year 2024 on Wednesday, December 4, 2024, after the market close. The company will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to review its financial results and business outlook. Synopsys headquarters in Sunnyvale, Calif. (PRNewsfoto/Synopsys, Inc.) Financial and other statistical information to be discussed on this confe ...

In the latest market close, Synopsys (SNPS) reached $501.58, with a +1.28% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.Coming into today, shares of the maker of software used to test and develop chips had lost 3.91% in the past month. In that same time, the Computer and Technology sector gained 1.65%, while the S&P 500 gained 1.39%.Analysts and ...

Synopsys (SNPS) ended the recent trading session at $495.25, demonstrating a +0.37% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw a downswing of 0.33%, while the tech-heavy Nasdaq appreciated by 0.76%.Shares of the maker of software used to test and develop chips witnessed a loss of 3.32% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47 ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. . BTIG analyst Gregory Lewis initiated coverage on DHT Holdings, Inc. DHT with a Buy rating and announced a price target of $16. DHT shares fell 3.2% to close at $11.34 on Monday. See how other analysts view this stock. · Berenberg analyst Nay Soe Naing initiated coverage on Synopsys, Inc. SNPS with a Buy rating and anno ...