Analysts Anticipate Synopsys, Inc. (NASDAQ:SNPS) to Post $1.57 EPS

Analysts forecast that Synopsys, Inc. (NASDAQ:SNPS) will report earnings of $1.57 per share for the current quarter, Zacks Investment Research reports. Four analysts have issued estimates for Synopsys’ earnings, with the highest EPS estimate coming in at $1.68 and the lowest estimate coming in at $1.52. Synopsys reported earnings of $1.15 per share in the same quarter last year, which would indicate a positive year over year growth rate of 36.5%. The firm is expected to issue its next earnings results on Wednesday, December 2nd.

According to Zacks, analysts expect that Synopsys will report full year earnings of $5.55 per share for the current fiscal year, with EPS estimates ranging from $5.50 to $5.67. For the next fiscal year, analysts anticipate that the company will report earnings of $6.19 per share, with EPS estimates ranging from $6.01 to $6.36. Zacks’ EPS averages are an average based on a survey of analysts that follow Synopsys.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $1.74 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.34 by $0.40. The business had revenue of $964.10 million during the quarter, compared to analysts’ expectations of $894.23 million. Synopsys had a return on equity of 14.66% and a net margin of 17.88%. The company’s revenue for the quarter was up 13.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.18 EPS.

SNPS has been the subject of several research reports. UBS Group initiated coverage on Synopsys in a research note on Wednesday, May 27th. They set a “buy” rating and a $209.00 price objective for the company. Needham & Company LLC upped their price objective on Synopsys from $175.00 to $215.00 and gave the company a “buy” rating in a report on Thursday, August 20th. Royal Bank of Canada upped their price objective on Synopsys from $210.00 to $228.00 and gave the company an “outperform” rating in a report on Thursday, August 20th. Robert W. Baird upped their price target on Synopsys from $222.00 to $228.00 and gave the stock an “outperform” rating in a research note on Thursday, August 20th. Finally, Wells Fargo & Company increased their price objective on Synopsys from $220.00 to $230.00 and gave the company an “overweight” rating in a research note on Thursday, August 20th. Three analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. Synopsys currently has an average rating of “Buy” and an average target price of $205.64.

Shares of Synopsys stock traded down $4.09 on Wednesday, hitting $206.86. The company’s stock had a trading volume of 702,647 shares, compared to its average volume of 1,102,473. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.99 and a current ratio of 1.06. Synopsys has a 1 year low of $104.90 and a 1 year high of $230.12. The firm has a fifty day moving average price of $205.47 and a 200-day moving average price of $172.78. The company has a market capitalization of $32.01 billion, a price-to-earnings ratio of 51.19, a price-to-earnings-growth ratio of 3.11 and a beta of 1.15.

Synopsys announced that its Board of Directors has approved a share buyback plan on Friday, June 19th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the semiconductor company to reacquire up to 1.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

In other news, Director Janice Chaffin sold 5,000 shares of Synopsys stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $211.56, for a total transaction of $1,057,800.00. Also, insider John F. Runkel, Jr. sold 9,629 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $212.03, for a total transaction of $2,041,636.87. Following the transaction, the insider now directly owns 27,135 shares of the company’s stock, valued at $5,753,434.05. The disclosure for this sale can be found here. In the last 90 days, insiders sold 301,727 shares of company stock valued at $63,512,097. 1.87% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Pearl River Capital LLC purchased a new stake in shares of Synopsys during the 1st quarter valued at $29,000. Lion Street Advisors LLC acquired a new position in shares of Synopsys during the 1st quarter valued at $34,000. Blue Square Asset Management LLC acquired a new position in shares of Synopsys during the 2nd quarter valued at $35,000. Sandy Spring Bank acquired a new position in shares of Synopsys during the 2nd quarter valued at $39,000. Finally, Harbor Investment Advisory LLC acquired a new position in shares of Synopsys during the 1st quarter valued at $49,000. 88.30% of the stock is owned by institutional investors.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits (ICs). It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform, which provides virtual prototyping, static and formal verification, simulation, emulation, field-programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.

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