Synopsys (SNPS) Q2 Earnings and Revenues Lag Estimates

Company Performance - Synopsys reported quarterly earnings of $3 per share, missing the Zacks Consensus Estimate of $3.03 per share, but showing an increase from $2.54 per share a year ago, representing an earnings surprise of -0.99% [1] - The company posted revenues of $1.45 billion for the quarter ended April 2024, missing the Zacks Consensus Estimate by 3.83%, compared to year-ago revenues of $1.39 billion [2] - Over the last four quarters, Synopsys has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Synopsys shares have added about 11% since the beginning of the year, slightly underperforming the S&P 500's gain of 11.6% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $3.24 on $1.59 billion in revenues, and $13.23 on $6.39 billion in revenues for the current fiscal year [7] Industry Context - The Computer - Software industry, to which Synopsys belongs, is currently in the top 19% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Synopsys' stock performance [5][6]