Synopsys (NASDAQ:SNPS) Issues Q4 2021 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its fourth quarter 2021 earnings guidance on Wednesday morning. The company provided EPS guidance of $1.750-$1.800 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.490. The company issued revenue guidance of $1.14 billion-$1.17 billion, compared to the consensus revenue estimate of $1.04 billion.Synopsys also updated its FY 2021 guidance to $6.780-$6.830 EPS.

NASDAQ SNPS traded up $1.52 during trading on Wednesday, reaching $334.11. The company’s stock had a trading volume of 4,049 shares, compared to its average volume of 835,766. The stock has a market capitalization of $50.95 billion, a PE ratio of 69.29, a P/E/G ratio of 4.47 and a beta of 1.08. The firm has a fifty day moving average of $302.20 and a 200 day moving average of $268.47. Synopsys has a one year low of $193.55 and a one year high of $340.66.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Tuesday, August 17th. The semiconductor company reported $1.81 earnings per share for the quarter, topping analysts’ consensus estimates of $1.78 by $0.03. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.05 billion. Synopsys had a return on equity of 15.03% and a net margin of 18.48%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.74 EPS. As a group, equities analysts forecast that Synopsys will post 4.66 earnings per share for the current year.

Synopsys declared that its Board of Directors has authorized a share repurchase program on Thursday, June 17th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to purchase up to 1.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Several brokerages recently weighed in on SNPS. Robert W. Baird increased their target price on Synopsys from $320.00 to $350.00 and gave the company an outperform rating in a report on Thursday, August 19th. Westpark Capital began coverage on Synopsys in a report on Thursday, July 15th. They set a buy rating and a $340.00 target price for the company. Rosenblatt Securities increased their target price on Synopsys from $314.00 to $349.00 and gave the company a buy rating in a report on Wednesday, August 25th. HSBC restated an average rating on shares of Synopsys in a report on Thursday, August 26th. Finally, KeyCorp increased their target price on Synopsys from $320.00 to $347.00 and gave the company an overweight rating in a report on Thursday, August 19th. One research analyst has rated the stock with a sell rating, three have given a hold rating and ten have issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of Buy and a consensus target price of $318.75.

In other news, CAO Sudhindra Kankanwadi sold 3,325 shares of the firm’s stock in a transaction that occurred on Monday, August 23rd. The stock was sold at an average price of $320.57, for a total value of $1,065,895.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Chi-Foon Chan sold 278,642 shares of the firm’s stock in a transaction that occurred on Friday, August 20th. The shares were sold at an average price of $314.98, for a total value of $87,766,657.16. Following the transaction, the chief executive officer now directly owns 164,515 shares of the company’s stock, valued at approximately $51,818,934.70. The disclosure for this sale can be found here. In the last quarter, insiders sold 347,230 shares of company stock valued at $108,939,023. Company insiders own 1.56% of the company’s stock.

About Synopsys

Synopsys, Inc engages in the provision of software products and consulting services in the electronic design automation industry. The firm operates through the following segments: Semiconductor and System Design, and Software Integrity. It provides intellectual property products, which are pre-designed circuits that engineers use as components of larger chip designs, as well as software and hardware that are used to develop the electronic systems that incorporate chips and the software that runs on the circuits.

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Earnings History and Estimates for Synopsys (NASDAQ:SNPS)

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