Synopsys Shares Rise 2.8% Ahead of 64% Revenue Growth Forecast
Synopsys shares climbed 2.82%, outpacing the S&P 500’s 0.47% gain despite an 18.72% one-month slide versus sector peers. The firm will report February 25 Q4 earnings with estimates of $3.57 EPS (17.82% growth) on $2.39 billion revenue (64.28% growth).
1. Stock Performance
Synopsys shares gained 2.82% in the latest session, beating the S&P 500’s 0.47% uptick and surpassing the Dow’s 0.04% and Nasdaq’s 0.9% moves. Over the past month, the stock has declined 18.72%, underperforming the Computer and Technology sector’s 1.96% loss.
2. Earnings Projections
The company is set to release fourth-quarter results on February 25, with consensus forecasts of $3.57 in EPS, marking 17.82% year-over-year growth, and $2.39 billion in revenue, up 64.28% from the prior-year period.
3. Valuation Profile
Synopsys trades at a forward P/E of 29.67, a premium to the industry average of 18.38, and carries a PEG ratio of 2.5 versus the Computer-Software industry’s 1.5, indicating elevated growth expectations.
4. Analyst Outlook
Consensus EPS estimates have fallen 0.1% over the past month, suggesting a cautious outlook, while overall estimate revisions have remained modest, reflecting neutral sentiment among analysts.