Synopsys (NAS: SNPS) reported earnings on March 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Synopsys beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
Synopsys reported revenue of $425.5 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $416.5 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $364.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The seven earnings estimates compiled by S&P Capital IQ averaged $0.52 per share on the same basis. GAAP EPS of $0.39 for Q1 were 26% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.0%, 150 basis points better than the prior-year quarter. Operating margin was 16.5%, 370 basis points better than the prior-year quarter. Net margin was 13.3%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $417.3 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $1.67 billion. The average EPS estimate is $2.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 82 members out of 105 rating the stock outperform, and 23 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Synopsys a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Synopsys is outperform, with an average price target of $33.86.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Synopsys makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in our free report: "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
Add Synopsys to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.