Shares of Synopsys (NASDAQ:SNPS) fell in after-hours trading after the software company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $3.00, which missed analysts’ consensus estimate of $3.03 per share. Sales increased by 5% year-over-year, with revenue hitting $1.46. This missed analysts’ expectations by $60 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q3 2024 to be in the ranges of $1.505 billion to $1.535 billion and $3.25 to $3.30, respectively. For reference, analysts were expecting $1.59 billion in revenue, along with an adjusted EPS of $3.22.
Hedge Funds Are Very Negative on SNPS Stock
When it comes to “smart money,” money managers don’t seem to be all that confident in SNPS stock. Indeed, hedge funds decreased their holdings in the stock by 291,900 shares in the past three months as share prices rose. As a result, they have a very negative confidence signal, as indicated by the graphic below.
Is SNPS a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SNPS stock based on eight Buys assigned in the past three months, as indicated by the graphic below. After a 46% rally in its share price over the past year, the average SNPS price target of $648.57 per share implies 12.87% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward SNPS Stock Right Now?
Before you hurry to invest in SNPS, think about the following:
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