SYNOPSYS Reports Fourth Quarter Earnings Results for FY2023
December 13, 2023
🌥️Earnings Overview
SYNOPSYS ($NASDAQ:SNPS) reported total revenue of USD 1599.1 million and net income of USD 349.2 million for the fourth quarter of FY2023, which ended on October 31 2023. These figures represent a 24.5% and 127.5% increase, respectively, from the same quarter in FY2022.
Stock Price
On Wednesday, SYNOPSYS, the leading provider of advanced semiconductor and electronic design automation solutions, reported its fourth quarter earnings results for fiscal year 2023. The company’s stock opened at $550.6 and closed at $552.5, an increase of 1.6% from the previous closing price of $543.7. The strong fourth quarter results were attributed to favorable currency rates and increased demand for semiconductor and embedded software design automation solutions from the automotive and aerospace industries. The company also saw increased demand for its products in multiple other industries due to the growing adoption of digital technology throughout the world.
The impressive fourth quarter results are a testament to SYNOPSYS’ ongoing commitment to provide its customers with world-class design automation solutions and services. Going forward, the company is expecting to continue seeing positive results as it looks to expand into new markets and capitalize on the current technology trend. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Synopsys. SYNOPSYS_Reports_Fourth_Quarter_Earnings_Results_for_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 5.84k | 1.23k | 22.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Synopsys. SYNOPSYS_Reports_Fourth_Quarter_Earnings_Results_for_FY2023″>More…
| Operations | Investing | Financing |
| 1.7k | -482.1 | -1.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Synopsys. SYNOPSYS_Reports_Fourth_Quarter_Earnings_Results_for_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.33k | 4.15k | 40.42 |
Key Ratios Snapshot
Some of the financial key ratios for Synopsys are shown below. SYNOPSYS_Reports_Fourth_Quarter_Earnings_Results_for_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.6% | 27.1% | 23.0% |
| FCF Margin | ROE | ROA |
| 25.9% | 13.9% | 8.1% |
Analysis
GoodWhale recently conducted an analysis of Synopsys’s wellness, and found that according to Star Chart, the company was strong in growth and profitability, medium in assets, and weak in dividend. As Synopsys is classified as a ‘gorilla’, a type of company that we conclude has achieved stable and high revenue or earning growth due to its strong competitive advantage, it is likely to be of interest to long-term investors looking for a safe and reliable investment. Furthermore, due to Synopsys’s high health score of 10/10 – which takes into account its cash flows and debt – we also believe that the company has the ability to safely ride out any crisis without the risk of bankruptcy. SYNOPSYS_Reports_Fourth_Quarter_Earnings_Results_for_FY2023″>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
Investors in SYNOPSYS should be pleased with the company’s latest earnings report, released on October 31, 2023. Total revenue for the fourth quarter of that fiscal year amounted to USD 1599.1 million, a 24.5% year-over-year increase. Net income for the same period was even more impressive, amounting to USD 349.2 million, a 127.5% increase from the same quarter in the previous fiscal year. This shows SYNOPSYS is in a strong position financially, making it an attractive investment opportunity for those looking for long-term growth.
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