Synopsys

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 […]

Synopsys Inc – Sees Fiscal 2024 Rev $ 6,090 Mln – $6,150 Mln.

The following is a summary of the Synopsys, Inc. (SNPS) Q2 2024 Earnings Call Transcript: Financial Performance: Synopsys reported a Q2 revenue growth of 15% year-over-year, reaching the high-end of their guided range. Non-GAAP operating margin increased 3 points year-over-year to 37.3%. Non-GAAP EPS saw a 26% year-over-year increase which exceeded guidance. The company updated their revenue and non-GAAP EPS guidance for the full year due to continued business momentum. Synopsys reported a robust non-cancellable backlog of $7.9 billion. Business Progress: Synopsys highlighted the increase in systemic complexity driven by influences such as AI, silicon proliferation, and software-defined systems. The company reported 14% year-over-year revenue growth in their Design Automation segment, driven by increasing adoption of synopsys.ai. Demand for interface IP for AI and data center applications caused a 19% revenue growth in Synopsys’s Design IP segment. Synopsys plans to acquire Ansys, with the transaction expected to close in early

Needham analyst Charles Shi reiterates Synopsys with a Buy and maintains $660 price target.

Rosenblatt analyst Blair Abernethy reiterates Synopsys (NASDAQ:SNPS) with a Buy and maintains $615 price target.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our price target by $46 to $624, 39x our FY 25 (Oct.) EPS view, near peers and above SNPS’s 3-year historical average (~33x), given accelerating design complexity and AI momentum, as well as our positive view of the potential ANSYS acquisition. We raise our FY 24 EPS view by $0.15 to $13.60 and raise FY 25’s by $0.06 to $16.00. SNPS prints Jan-Q sales of $1.65B (+21% Y/Y) and EPS of $3.56 (+36%), both above consensus, while increasing its FY 24 EPS guide. Despite the rise, we think its outlook may include an overly cautious view on China (15% of Jan-Q sales vs. 12% in the prior Q). Design IP was particularly strong (sales +53% Y/Y to $526M), and we think SNPS’s industry-leading IP portfolio

Synopsys’ (SNPS) shares were trending higher early Thursday after the software company lifted its fiscal full-year 2024 earnings outlook on the back of better-than-expected first-quarter results. Per-share adjusted earnings are now set to come in between $13.47 and $13.55 for the fiscal year ending Oct. 31, the company said late Wednesday, up from its previous projections of $13.33 to $13.41. The consensus on Capital IQ is for normalized EPS of $13.46. The stock gained 4.7% in premarket trading. The firm reiterated its full-year revenue guidance range of $6.57 billion to $6.63 billion, while the Street is looking for $6.62 billion. The company also continues to see its adjusted operating margin improving by roughly two percentage points, Chief Financial Officer Shelagh Glaser said on an earnings call, according to a Capital IQ transcript. “We delivered a solid start to the year with revenue in the upper end of our guided range,”

Synopsys Guides For Q2 EPS of $3.09-$3.14 on Revenue of $1.56-$1.59 Billion, Vs CIQ Analyst Consensus of $2.97 on Revenue of $1.55 Billion.

The following is a summary of the Synopsys, Inc. (SNPS) Q1 2024 Earnings Call Transcript: Financial Performance: Synopsys reported a Q1 revenue of $1.65 billion, a 21% increase year-over-year. Non-GAAP operating margin was 38.7%, up by almost 3.5 points from the same quarter last year. Non-GAAP EPS was up by 36%, reaching $3.56. This has been part of a 26% CAGR in Non-GAAP EPS growth over the last three years. Total GAAP costs and expenses for the quarter were $1.29 billion, while non-GAAP costs and expenses were $1.01 billion. The full-year guidance for 2024 anticipates revenue between $6.57 billion and $6.63 billion, non-GAAP earnings per share between $13.47 and $13.55, and a cash flow from operations of approximately $1.4 billion. The Design Automation segment produced a revenue of $985.3 million, marking an increase of 11%. The Design IP segment revenue increased to $525.7 million, a rise of 53%. Software Integrity

Synopsys (NASDAQ:SNPS) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/20/2024 11.41% Rosenblatt $570 → $615 Maintains Buy 01/17/2024 19.57% Needham $660 → $660 Maintains Buy 01/04/2024 17.75% B of A Securities $650 → $650 Maintains Buy 12/13/2023 14.13% Wells Fargo $620 → $630 Maintains Overweight 12/01/2023 3.26% Rosenblatt $485 → $570 Maintains Buy 11/30/2023 6.88% Baird $506 → $590 Maintains Outperform 11/30/2023 12.32% Stifel $550 → $620 Maintains Buy 11/30/2023 12.32% Wells Fargo $600 → $620 Maintains Overweight 11/30/2023 19.57% Needham $500 → $660 Maintains Buy 11/30/2023 22.28% Keybanc $600 → $675 Maintains Overweight 11/29/2023 17.75% B of A Securities → $650 Maintains Buy 11/27/2023 -0.36% Stifel → $550 Reiterates Buy → Buy 11/27/2023 8.7% Keybanc $540 → $600 Maintains Overweight 11/21/2023 8.7% Wells Fargo → $600 Maintains Overweight 11/10/2023 8.7% Morgan Stanley → $600 Initiates Coverage On → Overweight 10/13/2023

Synopsys Reportedly in Advanced Discussions to Purchase Ansys for $35 Billion。

Synopsys is in talks to acquire Ansys in a move that would create a new design-software giant and mark one of the first big merger deals of the new year. An acquisition of Ansys, which has a market value of nearly $30 billion, could be struck early in 2024, according to people familiar with the matter. The talks could still fall apart, and another suitor could emerge.