Synopsys Inc. (SNPS) will release its Q3 fiscal 2024 outcomes on August 21, following market close. Investors will closely monitor how the actual result comes where the upbeat result might find a relief above the 100 day SMA line.
SNPS Earnings Forecast
For the Q3 of its fiscal year, the company expects revenues to range from $1.51 billion to $1.54 billion. The analysts' Consensus estimate, set at $1.53 billion, indicates a 2.6% increase over the reported amount for last year. Also, the non-GAAP revenue per share could range from $3.25 to $3.30.
Synopsys' third-quarter earnings are expected to demonstrate the increasing product demand.
Demand for Synopsys' cutting-edge solutions in the third quarter is probably due to the growing applications of artificial intelligence (AI), the Internet of Things (IoT), 5G, high-speed computing, cloud services, and the automotive industry. This demand is predicted to be significantly fueled by the Fusion Compiler's substantial expansion, driven by major agreements in the 5G, AI, and server chip sectors.
Synopsys Management Forecast
Top-line growth in the reported quarter was probably fueled by vendors and chip manufacturers adopting Synopsys.ai at a greater rate. Furthermore, it is anticipated that the expanded collaboration with Intel, which aims to improve Synopsys' manufacturing procedures through the use of the company's multi-die systems, intellectual property, and electronic design automation (EDA), will be crucial.
Synopsys' third-quarter fiscal growth was expected to be largely driven by international design activity and customer engagement. The company's interface portfolio has probably seen a rise in revenue due to the growing traction of its user interface and foundation IP solutions. Furthermore, several contract wins and the expanding usage of the Fusion Platform—which includes the Fusion Compiler—are anticipated to have a favorable effect on the business's third-quarter earnings.
Strategic alliances between Synopsys and major market players, like Microsoft and Taiwan Semiconductor Manufacturing Company, probably helped the company better deploy its cloud solutions, which drove up sales in the quarter under assessment.
SNPS Stock Forecast Technical Analysis
In the daily chart of SNPS stock price, the recent price showed a bullish reversal from the 477.63 support line and moved above the high volume line. However, the broader market context is corrective as the current price found a resistance at the 100 day Simple Moving Average level.
In the higher timeframe, the recent weekly candle suggest a bullish engulfing candle in the weekly timeframe and closed with a bullish continuation signal.
Based on the daily market outlook, the 100 day SMA would be a challenge for bulls as the current price still trades below this line. In that case, a successful break could resume the existing trend aiming for the 624.00 level.
On the other hand, a bearish recovery with a daily close below the 540.00 high volume line might lower the Synopsys stock price towards the 500.00 psychological level.
