Synopsys Q4 Earnings Preview: Key Performance Metrics to Watch

Wall Street analysts are optimistic about Synopsys (SNPS - Free Report) as they anticipate the company will announce quarterly earnings of $3.29 per share in its upcoming release. This projection reflects a year-over-year growth of 3.8%. In terms of revenue, analysts expect Synopsys to achieve approximately $1.63 billion, which represents a 2.1% increase compared to the same quarter last year.

The consensus estimate for earnings per share (EPS) has remained stable over the last month, suggesting that analysts have collectively reassessed their forecasts without any significant changes.

Before any earnings report, it is crucial to consider alterations in earnings projections. These changes significantly impact investors' expectations and can influence stock movements in the short term. Numerous studies have shown a strong link between shifts in earnings estimates and the stock's immediate price response.

While many investors rely on consensus earnings and revenue figures to gauge a company's performance, examining forecasts for particular key metrics provides deeper insights into its operational performance.

Exploring Key Metrics for Synopsys

With this in mind, let's delve into the average estimates for specific metrics that analysts closely monitor for Synopsys.

Analysts have projected a figure of $249.31 million for 'Revenue - Maintenance and Service,' which indicates a decline of 10.9% from the previous year's quarter.

For 'Revenue - Total Products Revenue,' the expectation is set at $1.38 billion, reflecting a robust 4.6% increase year-over-year.

A closer look at the different segments shows that analysts project 'Revenue by Segment - Design IP' to reach $537.96 million, marking a positive change of 4.7% from the year-ago quarter.

In addition, the estimated 'Revenue by Segment - Design Automation' is expected to hit around $1.09 billion, translating to a significant year-over-year growth of 14.6%.

Lastly, analysts forecast 'Revenue - Upfront Products' at $475.29 million, which represents an increase of 5.8% from last year.

Earnings, Analysts, Revenue