) is set to report third quarter 2013 results on Aug 21, 2013.
Last quarter, it posted 31.11% positive surprise with a trailing
four-quarter average positive surprise of 40.76%. Let's see how
things are shaping up for this quarter.
Growth Factors this Past Quarter
Synopsys reported better-than-expected second-quarter results
wherein both the top line and bottom line beat the Zacks
Consensus Estimate. The top line was primarily impacted by higher
license revenues and maintenance revenues. The company
witnessed volume increase across all its business segments.
Moreover, higher margins positively impacted net earnings.
The company's recent product launches (Dolby MS11 Decoder,
28-nm Data Converter IP Portfolio) and deal wins (Fujitsu) are
expected to positively impact results. Moreover, the unique
intellectual properties provided by Synopsys with the help of its
technology leadership and global support will likely drive its
The Zacks Consensus Estimate for the third quarter stands at
34 cents while that for fiscal 2013 stands at $1.60. Neither of
the estimates has been revised in the last 60 days.
The stock carries a Zacks Rank #3 (Hold).
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
We expect the following stocks to beat earnings estimates in
the upcoming quarters given positive Expected Surprise Prediction
or ESP (Read:
Zacks Earnings ESP: A Better Method
) and a favorable Zacks Rank.
), Earnings ESP of +2.5% and a Zacks Rank #1 (Strong Buy)
), Earnings ESP of +2.3% and a Zacks Rank #2 (Buy)
Portfolio Recovery Associates Inc.
), Earnings ESP of +2.3% and a Zacks Rank #2 (Buy).
HEWLETT PACKARD (HPQ): Free Stock Analysis
PORTFOLIO RCVRY (PRAA): Free Stock Analysis
DONNELLEY (RR) (RRD): Free Stock Analysis
SYNOPSYS INC (SNPS): Free Stock Analysis
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