Technology

CFRA Maintains Buy Recommendation On Shares Of Synopsys, Inc.

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We raise our target by $10 to $634, 41.5x our FY 25 EPS view, near peers and above SNPS’s three-year average (~32x) on accelerating AI-enabled design demand. We lower our FY 24 EPS view by $0.64 to $12.96 and lower FY 25’s by $0.72 to $15.28 as a result of the pending sale of the Software Integrity group (SIG) for ~$2B. We view the sale positively as SNPS focuses on consistent mid-teens core EDA growth, supported by a still-high backlog of $7.9B (-4% Q/Q, +8% Y/Y). SNPS posted Apr-Q sales of $1.46B (+15% Y/Y ex-SIG) and EPS of $3.00 (+26%), both near expectations, while lifting its FY 24 sales guide to +15% from +13%. Design IP (27% of Apr-Q sales) grew 19% on broad-based strength, and we expect continued momentum on rising design activity for next-gen architectures, led by strength in data center, with stability in automotive. In Design Automation […]

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Nvidia 1Q Sales Triple

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Nvidia is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Nvidia reported that sales more than tripled in its latest quarter and gave a sales forecast that signaled the AI boom that lifted the chip maker above a $2 trillion valuation is still going strong. Revenue rose to $26 billion for the quarter, the company said. Net profit was $14.88 billion, up from $2 billion a year before. The sales and profit were ahead of Wall Street estimates in a FactSet survey. The company’s outlook of around $28 billion in sales for its current fiscal quarter was also higher than anticipated. Dow Jones & Co. owns Factiva.

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Nvidia Shows ‘No Sign of Slowing Down’ After Another Beat, Morgan Stanley Says

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Nvidia (NVDA) is showing “no sign of slowing down” after its Q1 beat with revenue of $26.04 billion compared to Wall Street expectations of $24.59 billion, Morgan Stanley said Thursday in a note. The firm said Nvidia has an upside of $2 billion that is before new product hits the markets in H2. “The $2 billion of upside is coming from product that will be winding down over the next nine months, with a transition to Blackwell which will take us right back into allocation,” Morgan Stanley said. The company continues to be the “clearest way” to get exposure to artificial intelligence “even amid extreme enthusiasm,” the firm said. “With the rally in other compute names with AI exposure, Nvidia actually becomes easier to rationalize.” The firm also said the customer demand and front line sales are more optimistic than what “supply chain or lead time would indicate.” Morgan Stanley

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Analog Devices (ADI) Rides Past ‘Bottom’ With Strong Outlook, Morgan Stanley Says

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Analog Devices (ADI) is heading for a recovery after managing the downcycle well with a stronger than expected fiscal Q3 outlook, Morgan Stanley said in a note. “The company has excelled in managing the downcycle and remains our preferred name as we enter an analog upcycle,” Morgan Stanley said in the report. Among the reasons for optimism were improving bookings in all markets, rising sell-through in Q3 from Q2, and decreasing channel inventory, according to the report. “The company validated our June quarter inflection thesis and has given reason to be encouraged that we should start thinking about the strength of the recovery from here,” the report said. After the results, Morgan Stanley revised its estimates for 2024 to $9.382 billion with a margin of 68% and EPS of $6.40, compared with $9.035 billion, 68.2%, and $5.70 previously. Morgan Stanley raised its price target on the stock to $260 from

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Why Snowflake’s Stock Is Falling Despite a Boost to Guidance

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By Emily Bary Bernstein worries that ‘expectations may creep too high for next quarter’ and says the AI messaging looks murky Trends are improving at Snowflake Inc., but perhaps not enough to settle the investor debate over the controversial software stock. One highlight of Snowflake’s (SNOW) latest earnings report was that the company upped its full-year forecast for product revenue, having disappointed big time with its initial guidance three months back. But some analysts aren’t yet convinced that Snowflake shares are primed for a major rally. The new outlook and growth in remaining performance obligations “might overly inflate investor expectations,” according to Bernstein’s Mark Moerdler, who added that Snowflake’s artificial-intelligence strategy seemed murky. He and his team “worry that confidence in growth durability and management’s credibility in estimating the revenue/growth opportunity are tenuous, and expectations may creep too high for next quarter,” he wrote. “More importantly, the company’s long-term strategy

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Salesforce Q1 Results Likely to Exceed Low Expectations, Oppenheimer Says

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Salesforce (CRM) fiscal Q1 results are expected to surpass already low expectations, Oppenheimer said in a note Thursday. The company expects Q1 adjusted earnings per share of $2.37 to $2.39 on revenue of $9.12 billion to $9.17 billion. Salesforce is expected to report Q1 results on Wednesday, and Oppenheimer expects its revenue to be around $9.15 billion, up 11% year-over-year, with a pro forma EPS of $2.37. “Our earnings preview research mosaic points to mixed business trends and negative [foreign exchange] headwinds in [Q1 of 2025] that foretells little changes to estimates and fundamentals,” Oppenheimer said, adding that it expects durable margin improvement and EPS growth, supporting valuation multiples. Expectations are low going into the first quarter, while the company’s pricing strategies, platform business and Data Cloud are expected to remain, strong growth drivers, this year, the note said. Salesforce pulled out of the deal to acquire Informatica (INFA) in

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Nvidia May Achieve EPS Above $50 in 2 Years Amid Faster Blackwell Adoption, BofA Says

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Nvidia (NVDA) likely has the potential to achieve annual earnings in excess of $50 a share within two years amid faster adoption of its recently launched Blackwell platform, BofA Securities said in a note e-mailed Thursday. The chipmaker late Wednesday logged fiscal first-quarter results that topped Wall Street’s estimates as demand for generative artificial intelligence drove record data-center revenue. The next-generation Blackwell AI factory platform, which was launched in March, is in full production, Chief Financial Officer Colette Kress said on an earnings conference call, according to a Capital IQ transcript. “Blackwell is a giant leap with up to 25x lower (total cost of ownership) and energy consumption than Hopper,” Kress told analysts late Wednesday. “Demand for H200 and Blackwell is well ahead of supply, and we expect demand may exceed supply well into next year.” Hopper is Nvidia’s graphics processing unit computing platform used for the training of large

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Intuit Raises Full-year Forecast, and Says AI Is Helping

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By Bill Peters Artificial intelligence is ‘delivering significant benefits to our customers and strong results across the company,’ CEO says Intuit Inc., the tech company behind TurboTax filing software and the personal-finance site Credit Karma, raised its full-fiscal-year profit and sales outlook on Thursday, following third-quarter results that topped Wall Street’s expectations. Management attributed those results in part to its adoption of artificial intelligence, as it tries to use that technology and other data to help people file taxes – with the aid of human experts – and deal with other business matters. The quarter also covered much of the tax season, when Intuit tends to get a boost in sales. Intuit (INTU) said it expects fiscal-year sales of $16.16 billion to $16.2 billion, or growth of around 13%. That’s up from a prior forecast for gains of 11% to 12%. The company also raised its full-year adjusted per-share profit

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Intuit Lifts Outlook After Big Gains in 3Q

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Intuit ratcheted up full-year guidance after earnings and sales climbed in its busiest fiscal quarter. The maker of tax-preparation software posted a profit of $2.39 billion, or $8.42 a share, for the three months ended April 30, up from $2.09 billion, or $7.44 a share, in the same quarter a year ago. Stripping out one-time items, earnings were $9.88 a share. Analysts polled by FactSet had been expecting adjusted earnings of $9.38 a share. Revenue rose to $6.74 billion from $6.02 billion in the year-ago quarter, topping analyst projections for $6.65 billion, according to FactSet. The top line of its consumer group was up 9% at $3.8 billion, while revenue from its small business and self-employed segment was up 18% at $2.4 billion. Credit Karma, its credit-checking personal finance site, logged 8% higher revenue on strength from its checking account, credit cards, auto insurance and personal loans offerings. Intuit now

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Intuit Q3 Earnings: EPS Beat, Revenue Beat, Guidance Bump, AI Momentum And More

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Intuit Inc (NASDAQ:INTU) reported third-quarter earnings results for fiscal-year 2024 Thursday after the bell. Here’s a rundown of the report. Q3 Earnings: Intuit’s third-quarter revenue increased 12% year-over-year to $6.737 billion, beating the consensus estimate of $6.647 billion. The financial technology platform company reported adjusted earnings of $9.88 per share, beating analyst estimates of $9.37 per share. Small Business and Self-Employed Group revenue was up 18% year-over-year, while Consumer Group revenue climbed 9%. Online Ecosystem revenue was up 19%, Credit Karma revenue was up 8% and ProTax Group revenue was up 3% year-over-year. “The era of AI is one of the most significant technology shifts in our lifetime and our strategy to be the global AI-driven expert platform is delivering significant benefits to our customers and strong results across the company,” said Sasan Goodarzi, CEO of Intuit. “I’m proud of our innovation and performance, and because of our momentum, we are raising

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Intuit Warns of Fewer TurboTax Users Who File for Free. It Says It’s Not Interested in Them Anyway.

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By Bill Peters Artificial intelligence is ‘delivering significant benefits to our customers and strong results across the company,’ CEO says Shares of Intuit Inc. fell after hours on Thursday, as the tech company behind TurboTax filing software and the personal-finance site Credit Karma warned of a decline in the number of people who use TurboTax for free. The drop came even as the company raised its full full-fiscal-year profit and sales outlook. Shares fell 6.4% after hours. Intuit (INTU) said it expects fiscal-year sales of $16.16 billion to $16.2 billion, or growth of around 13%. That’s up from a prior forecast for gains of 11% to 12%. The company also raised its full-year adjusted per-share profit forecast to $16.79 to $16.84, representing a roughly 17% increase, better than a previous call for growth of 12% to 14%. The company gave that forecast in the wake of the key tax season,

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CFRA Maintains Buy Recommendation On Shares Of Snowflake Inc.

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We lower our price target by $9 to $199, using an EV/Sales ratio of 20x our FY 25 (Jan.) sales view, above peers on superior growth metrics but below SNOW’s 3-year average (~28x) on growth deceleration and a delayed path to meaningful profitability. We raise our FY 25 sales view by $25M to $3.49B and lower FY 26’s by $75M to $4.47B. SNOW posts above-consensus Apr-Q sales of $829M (+33% Y/Y) but below-consensus EPS of $0.14 (-7% Y/Y) as rising GPU costs weigh on profitability, which should constrain EPS growth this year. NRR of 128% fell by 300 bps Q/Q, the smallest decline in seven quarters, and we expect further stabilization this year on the 2H rollout of new products like Iceberg and Snowpark Container Services. Growth deceleration should be aided by SNOW’s significant RPO balance of $5.0B (-4% Q/Q, +46% Y/Y), including another large existing customer win ($100M) during

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