Synopsys, Inc. (NASDAQ:SNPS) Expected to Post Quarterly Sales of $1.04 Billion

Brokerages expect Synopsys, Inc. (NASDAQ:SNPS) to announce $1.04 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Three analysts have made estimates for Synopsys’ earnings, with the highest sales estimate coming in at $1.05 billion and the lowest estimate coming in at $1.04 billion. Synopsys reported sales of $964.13 million in the same quarter last year, which indicates a positive year over year growth rate of 7.9%. The company is expected to issue its next earnings report on Wednesday, August 18th.

According to Zacks, analysts expect that Synopsys will report full year sales of $4.06 billion for the current financial year, with estimates ranging from $4.03 billion to $4.08 billion. For the next year, analysts forecast that the business will report sales of $4.40 billion, with estimates ranging from $4.31 billion to $4.45 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of research analysts that follow Synopsys.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Tuesday, May 18th. The semiconductor company reported $1.70 EPS for the quarter, topping the consensus estimate of $1.53 by $0.17. The firm had revenue of $1.02 billion for the quarter, compared to analysts’ expectations of $988.20 million. Synopsys had a net margin of 20.27% and a return on equity of 16.58%. The company’s revenue for the quarter was up 18.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.22 EPS.

SNPS has been the topic of several research analyst reports. Westpark Capital began coverage on shares of Synopsys in a report on Thursday, July 15th. They issued a “buy” rating and a $340.00 price target on the stock. Rosenblatt Securities began coverage on shares of Synopsys in a research report on Tuesday, June 1st. They set a “buy” rating and a $302.00 price target on the stock. One research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have assigned a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $293.77.

Shares of SNPS stock traded up $2.81 on Friday, reaching $281.03. The stock had a trading volume of 16,024 shares, compared to its average volume of 770,830. The company has a quick ratio of 1.09, a current ratio of 1.19 and a debt-to-equity ratio of 0.01. The stock’s 50-day moving average price is $263.17. The stock has a market capitalization of $42.88 billion, a price-to-earnings ratio of 54.44, a price-to-earnings-growth ratio of 4.10 and a beta of 1.04. Synopsys has a 12 month low of $190.50 and a 12 month high of $300.91.

Synopsys announced that its board has initiated a stock repurchase plan on Thursday, June 17th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to buy up to 1.2% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

In other news, CEO Chi-Foon Chan sold 7,040 shares of the company’s stock in a transaction on Friday, May 21st. The shares were sold at an average price of $242.96, for a total value of $1,710,438.40. Also, CFO Trac Pham sold 17,831 shares of the company’s stock in a transaction on Thursday, June 24th. The shares were sold at an average price of $273.19, for a total transaction of $4,871,250.89. Following the sale, the chief financial officer now owns 48,978 shares of the company’s stock, valued at $13,380,299.82. The disclosure for this sale can be found here. In the last three months, insiders sold 43,273 shares of company stock worth $11,165,844. Insiders own 1.56% of the company’s stock.

A number of large investors have recently bought and sold shares of the stock. Barclays PLC raised its holdings in Synopsys by 33.8% in the 1st quarter. Barclays PLC now owns 235,192 shares of the semiconductor company’s stock worth $58,277,000 after purchasing an additional 59,431 shares in the last quarter. Bessemer Securities LLC purchased a new position in shares of Synopsys in the first quarter worth approximately $1,502,000. Stanley Laman Group Ltd. boosted its holdings in shares of Synopsys by 1,113.4% in the first quarter. Stanley Laman Group Ltd. now owns 29,061 shares of the semiconductor company’s stock worth $7,201,000 after buying an additional 26,666 shares during the last quarter. BNP Paribas Arbitrage SA boosted its holdings in shares of Synopsys by 32.7% in the first quarter. BNP Paribas Arbitrage SA now owns 60,207 shares of the semiconductor company’s stock worth $14,918,000 after buying an additional 14,833 shares during the last quarter. Finally, Dock Street Asset Management Inc. purchased a new position in shares of Synopsys in the first quarter worth approximately $2,923,000. Institutional investors own 84.71% of the company’s stock.

About Synopsys

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform that 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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