From Nasdaq:

Synopsys, Inc. is set to report its first-quarter fiscal 2024 results on Feb 21, with anticipated revenue between $1.63 billion and $1.66 billion. The company expects non-GAAP earnings per share between $3.40 and $3.45. Synopsys’ first-quarter result is likely to have benefited from the rising demand for its robust product portfolio, driven by trends in cloud computing, AI, 5G, high-performance computing, the cloud and automotive. The company is expected to have benefited from increased user engagements and design activities, including contract wins and the Fusion Platform, as well as the deployment of cloud solutions.

Synopsys’ partnership with industry giants like Microsoft and Taiwan Semiconductor Manufacturing Company is likely to have boosted the deployment of its cloud solutions. SNPS’ robust electronic design automation software partner base, which includes Juniper Networks, Realtek, Advanced Micro Devices, Toshiba and Wolfson, is likely to have served as a major revenue driver. Increased design investments in Synopsys’ ARC processors by automotive companies are also an upside. Despite the benefits, the company faces competition from the likes of Cadence Design Systems and the challenges of tightened budgets and unfavorable currency exchange rates.

According to Zacks, Synopsys may not see an earnings beat this season with an Earnings ESP of -0.21% and a Zacks Rank of 3. This is despite favorable combinations in the upcoming earnings announcements of Inseego, Vertiv, and NVIDIA. Inseego, for example, has an Earnings ESP of +4.17% and its Zacks Consensus Estimate for the fourth-quarter loss per share is pegged at 48 cents per share. Vertiv is expected to report fourth-quarter earnings of 54 cents per share with revenues pegged at $1.89 billion. NVIDIA’s fourth-quarter earnings is pegged at $4.54 per share with revenues at $20.21 billion. It is suggested to stay on top of upcoming earnings announcements.



Read more: Synopsys (SNPS) to Report Q1 Earnings: What’s in the Cards?