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Software & services

Synopsys likely headed for another earnings beat next week in the 'Smart Everything' era

Synopsys Inc (NASDAQ:SNPS) is poised to deliver another earnings beat when it reports its fiscal fourth-quarter earnings on November 29.

The chip design and testing software firm has posted an average earnings surprise of 4.16% for the past two quarters, according to Zacks.

For the fourth quarter, Synopsys is expected to report earnings of $3.04 per share on revenue of $1.58 billion, compared to $1.91 per share on revenue of $1.28 billion a year earlier.

The Zacks Earnings Expected Surprise Prediction is +0.94%, which indicates that analysts are bullish on a potential earnings beat.

Investors will be watching for updates on the company’s artificial intelligence technology, a quarter after CEO Aart de Geus said Synopsys was working to capitalize on the AI-driven “Smart Everything” era.

Shares of Synopsys traded 0.2% higher Wednesday afternoon to $541.20.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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