Synopsys Q1 revenue slightly beats estimates; co authorizes $2 bln buyback

Overview

• Semiconductor design software firm's Q1 revenue slightly beat analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company authorized $2 bln stock repurchase program

Outlook

• Synopsys expects Q2 revenue between $2.225 bln and $2.275 bln

• Company projects full-year revenue between $9.56 bln and $9.66 bln

• Synopsys forecasts Q2 non-GAAP EPS between $3.11 and $3.17

Result Drivers

• AI CAPABILITIES - AI continues to drive robust system-level and semiconductor R&D, strengthening strategic advantage and accelerating customer innovation

• STRONG EXECUTION - Achieved revenue at upper end of company guidance and non-GAAP EPS above its guidance, reflecting strong execution and financial discipline

Company press release: ID:nPn9rQMLFa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Synopsys Inc is $560.00, about 27.1% above its February 24 closing price of $440.72

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

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