Synopsys Outperforms Q1 Earnings and Raises FY23 Guidance.

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Synopsys ($NASDAQ:SNPS) reported excellent first quarter earnings, with Non-GAAP EPS reaching $2.62, beating analysts’ expectations by $0.13. Revenue of $1.36B was in-line with estimates. For the second quarter of 2023, the company provided guidance for Non-GAAP EPS to be between $2.45-$2.50, surpassing the consensus of $2.56. Synopsys also revised its outlook for the full-year of FY23.

The company raised its Non-GAAP EPS guidance to be between $10.53-$10.60, compared to the prior guidance of $10.28-$10.35 and the consensus of $10.35. The impressive results from the first quarter and improvement in the outlook for FY23 indicate that Synopsys is well-positioned for continued success, and investors seem to agree; shares of Synopsys rose after the earnings announcement.

Price History

Their stock opened at an impressive $375.5, and closed at $379.5 – up 0.9% from the previous day closing price of 375.9. Additionally, digital design, embedded systems, Internet of Things (IOT) and verification businesses experienced rapid growth in the quarter – indicating the company’s initiatives for diversifying its operations are paying off. With strong competitive strategies, strong execution and positive cash flow metrics, Synopsys is well positioned to take advantage of the growing opportunities in the semiconductor industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Synopsys. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Synopsys. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Synopsys. More…

Key Ratios Snapshot

Some of the financial key ratios for Synopsys are shown below. More…

Analysis

At GoodWhale, we recently conducted a fundamental analysis of SYNOPSYS, and the results are very positive. The Risk Rating assigned to SYNOPSYS’s profile is low, meaning that the company has a sound financial and business presence. We have identified areas where potential risks could develop in the future, and we strongly recommend that our customers register on goodwhale.com to view these areas in more detail. On our website, customers can view specifics about SYNOPSYS’s long-term prospects, such as its profitability and liquidity ratios. With this information, customers can make better investment decisions in order to maximize their returns. Ultimately, we believe that SYNOPSYS is a good option for low risk investments. Thanks to the thorough analysis conducted by GoodWhale experts, our customers are able to make well-informed decisions about the company. More…

Peers

Its main competitors are Cadence Design Systems Inc, Goodpatch Inc, and Zuken Elmic Inc.

– Cadence Design Systems Inc ($NASDAQ:CDNS)

Cadence Design Systems is a software company that provides tools that help engineers design semiconductors and other electronic products. The company’s market cap is $43.36 billion, and its return on equity is 22.8%. Cadence’s products are used by engineers to design and verify the manufacturing of semiconductors, computer chips, and other electronic products.

– Goodpatch Inc ($TSE:7351)

Patch Inc is a technology company that provides software development and IT services. The company has a market cap of 5.5 billion as of 2022 and a return on equity of 8.49%. Patch Inc offers a wide range of services including web and mobile application development, cloud computing, big data, and artificial intelligence. The company has a strong focus on helping its clients grow their businesses and expand their reach. Patch Inc has a team of experienced and skilled professionals who are dedicated to providing the best possible services to their clients.

– Zuken Elmic Inc ($TSE:4770)

Zuken Elmic Inc. is a Japanese electronics company that specializes in electronic design automation (EDA) software. The company has a market capitalization of 2 billion as of 2022 and a return on equity of 13.95%. The company’s products are used by electronics manufacturers to design and test printed circuit boards (PCBs). Zuken Elmic’s products are used by some of the world’s largest electronics companies, such as Samsung, LG, and Sony.

Summary

Synopsys Inc. reported better-than-expected financial results for its first quarter of 2023, exceeding both revenue and earnings guidance. This is a great sign for investors as the company looks set for continued growth and success for the rest of 2023.