Synopsys Earnings: What Investors Should Watch

Synopsys (NASDAQ:SNPS) will report earnings after markets close on Wednesday, May 22nd. Synopsys, Inc. supplies electronic design automation solutions to the global electronics market. The Company provides design technologies to creators of advanced integrated circuits, electronic systems, and systems on a chip. Synopsys also provides consulting services and support to its customers to streamline the overall design process and accelerate time to market.

Here is your Cheat Sheet to Synopsys Earnings:

Earnings Expectations: Analysts expect earnings of $0.63 per share on revenues of $496.27 million. Currently, the company’s P/E ratio stands at 27.81.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.58 to a profit $0.57. For the current year, the average estimate is a profit of $2.4, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Synopsys has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,337 1,360 1,381 1,536 1,756
Diluted EPS ($) 1.29 1.15 1.56 1.47 1.21

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 425.50 432.56 443.75 454.21 475.14
Diluted EPS ($) 0.39 0.14 0.50 0.1890 0.45

Past Performance:
Synopsys has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]