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California-based Synopsys, Inc. (SNPS) is a leading provider of electronic design automation (EDA) software for the semiconductor and electronics industries. It also offers a comprehensive suite of tools for chip design, including logic synthesis, functional verification, and physical design. Its market cap currently stands at $83.9 billion. Synopsys is scheduled to release its fiscal 2024 Q3 earnings results after the market closes on Wednesday, Aug. 21,
Ahead of the event, analysts expect Synopsys to report a profit of $2.37 per share, up 9.2% from $2.17 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters. Its EPS of $2.14 for the last reported quarter surpassed the consensus estimate by 1.4%.
Looking ahead, analysts expect Synopsys to report an EPS of $9.66 in fiscal 2024, up 22% from $7.92 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 19.8% annually to $11.57.
Over the past 52 weeks, SNPS stock has dropped 7.6%, trailing behind the broader S&P 500 Index's ($SPX) 18.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 18% returns during the same period.
Following Synopsys’ Q2 earnings release on May 22, SNPS shares climbed steadily for four trading sessions, fueled by the company's impressive financials. Synopsys announced revenue of $1.5 billion, marking a 15.2% increase year over year, and non-GAAP EPS of $3, which rose 26.1% annually and surpassed expectations. Additionally, the company upgraded its full-year revenue and non-GAAP EPS forecasts in response to its robust performance and ongoing business momentum.
The current consensus opinion on Synopsys stock is “Strong Buy” overall. Out of 14 analysts covering the stock, 12 suggest a “Strong Buy,” one advocates a “Moderate Buy,” and the remaining analyst advises a “Hold.”
The average price target for Synopsys is $636, indicating a potential upside of 20.9% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
