Synopsys (SNPS) Q4 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

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]