The company could also continue expanding its capabilities with mergers and acquisitions - described on the first-quarter earnings call as “value-enhancing”.

Intelligent systems will require more sophisticated technology and advanced chip designs, and this, in turn, could increase demand for the company’s products and services. A major driver of growth will be the rise in artificial intelligence, 5G and the Internet of Things. In reality, the automotive industry was never going to redesign its old chips simply because parts will be delayed by a few months, he added.īeyond the earnings call, things look positive for Synopsys. I think the race is on.”ĭe Geus explained that there are misassumptions about the current pace of design innovation due to the chip crunch’s impact on carmakers. In response to a question from Gary Mobley, an analyst at Wells Fargo Securities, during the first-quarter earnings call as to whether the company had experienced a slowdown, Aart de Geus, CEO of Synopsys, said: “On the contrary. Revenue jumped to $970.3m in the first quarter of 2021, up from $834.4m in the year-ago period. Management is expecting earnings per share to be between $1.50 and $1.55, with the Zacks consensus falling in the middle of the range at $1.52, representing a 24.5% jump on earnings of $1.22 posted in the year-ago quarter.ĭespite the automotive industry’s slump in output due to the semiconductor shortage and delay in parts being produced and shipped, investors will be keen to see if demand for its products has remained high during the three months to the end of April. The consensus estimate between four analysts was $988.47m, according to Zacks Equity Research. The company had set a revenue forecast for the quarter of $970m to $1bn, which would represent a growth rate of between 12% and 17% on the $861.3m posted in the second quarter of 2020. With Synopsys delivering its second-quarter 2021 earnings after the bell on 19 May, what can investors expect from the report? The fund is down 34.3% from its 16 February all-time high of $159.70 (as of 18 May’s close). The Ark Innovation ETF, of which Synopsys is a minor holding, returned 77.9% in the last year, as of 18 May, but has dropped 15.8% so far in 2021. While the fund has gained 52.4% in the past 52 weeks, it has fallen 16.1% from its 16 February all-time high of $59.72. The company was one of the top 15 holdings in First Trust Nasdaq Artificial Intelligence and Robotics ETF, which is up a marginal 0.7% since the turn of the year (through 18 May). So, how has Synopsys’ share price fared in comparison to the broader technology sector? Synopsys’ share price rise over the past year

Synopsys acquisitions