NASDAQ$SNPS

Synopsys Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Synopsys reported second quarter fiscal year 2020 results, with revenue and non-GAAP EPS exceeding targets.

Synopsys reported Q2 2020 revenue of $861.3 million and GAAP earnings per share of $0.71. The company reaffirmed its 2020 revenue and non-GAAP operating margin guidance and raised its non-GAAP earnings-per-share and operating cash flow targets.

  • Revenue for the second quarter was $861.3 million, compared to $836.2 million for the second quarter of fiscal 2019.
  • GAAP earnings per share was $0.71, compared to $0.77 per share for the second quarter of fiscal 2019.
  • Non-GAAP earnings per share was $1.22, compared to $1.16 per share for the second quarter of fiscal 2019.
  • Net income for the second quarter of fiscal 2020 was $109.9 million, compared to $118.2 million for the second quarter of fiscal 2019.

Headline financials

Total Revenue

$861M

Previous: $836M+3.0%
EPS (adj)

$1.22

Previous: $1.16+5.2%
Capital Expenditures

-$80.7M

Previous: -$69M-17.0%
Free Cash Flow

$309M

Previous: $80.4M+284.6%
Net Income

$110M

Previous: $118M-7.0%
Operating Income

$126M

Previous: $116M+9.0%
Gross Profit

$677M

Previous: $646M+4.9%
Cash & Equivalents

$856M

Previous: $631M+35.7%
Total Assets

$7.32B

Previous: $6.19B+18.2%
Stock-Based Comp

$56.4M

Previous: $36.9M+52.9%

Revenue & EPS history

Synopsys · Revenue · Quarterly

$861M

Q2 2020+3%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Synopsys · $1.47B total across 2 segments · Q4 2023

  • Design Automation
    $954M
  • Design IP
    $514M

Forward guidance

Synopsys provided its consolidated financial targets for the third quarter and full fiscal year 2020, assuming that the current U. S. government “Entity List” restrictions remain in place for the rest of the fiscal year.

Tailwinds

  • Q3 2020 Revenue: $875 million - $905 million
  • Q3 2020 GAAP EPS: $1.12 - $1.22
  • Q3 2020 Non-GAAP EPS: $1.33 - $1.38
  • FY 2020 Revenue: $3,600 million - $3,650 million
  • FY 2020 Non-GAAP EPS: $5.21 - $5.28

Headwinds

  • Q3 2020 GAAP Expenses: $721 million - $737 million
  • Q3 2020 Non-GAAP Expenses: $640 million - $650 million
  • Q3 2020 Other Income (Expense): $(5) million - $(3) million
  • FY 2020 GAAP Expenses: $2,991 million - $3,031 million
  • FY 2020 Non-GAAP Expenses: $2,630 million - $2,660 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+10.6%

Q4 2022

Best reaction

-24.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-6.8%-1.9%
Q1 2026-1.6%-5.5%-15.3%
Q4 2025-1.8%-2.6%+10.4%
Q3 2025-24.8%-30.6%-27.4%
Q2 2025-1.5%+0.8%+8.7%
Q1 2025-3.3%-5.3%-6.9%
Q4 2024-9.6%-10.8%-13.4%
Q3 2024-1.6%-5.6%-9.0%
Q2 2024+2.6%+2.8%+5.9%
Q1 2024+6.0%+5.1%+8.4%
Q4 2023-0.1%-2.3%-5.3%
Q3 2023-2.9%-0.1%+3.5%
Q2 2023+9.2%+7.1%+17.6%
Q1 2023-4.3%-5.7%-0.9%
Q4 2022+10.6%+2.4%-1.4%
Q3 2022-3.2%-7.1%-18.5%
Q2 2022+6.3%+8.5%+4.7%
Q1 2022-4.2%-6.0%+3.9%
Q4 2021+2.5%+1.3%+8.1%
Q3 2021+8.4%+10.0%+11.6%
Q2 2021+4.1%+5.8%+13.1%
Q1 2021-6.8%-12.4%-21.6%
Q4 2020+1.9%+4.0%+12.7%
Q3 2020+7.5%+6.8%-1.1%
Q2 2020+4.0%+5.6%+13.8%
Q1 2020-4.8%-10.4%-32.5%
Q4 2019-2.5%-2.2%+4.8%
Q3 2019+7.0%+5.1%+4.4%
Q2 2019+1.1%+0.8%+11.3%
Q1 2019-0.4%+1.0%+8.3%
Q4 2018+1.9%-0.4%-6.2%
Q3 2018+7.2%+8.7%+5.6%
Q2 2018-0.8%-1.1%-1.3%
Q1 2018-6.0%-4.8%-8.2%
Q4 2017+0.6%-2.3%-5.1%
Q3 2017-1.9%-0.4%+2.0%
Q2 2017-5.6%-3.8%-1.8%
Q1 2017+7.3%+7.1%+8.0%
Q4 2016-7.1%-6.1%-3.8%
Q3 2016+4.7%+4.8%+3.8%
Q2 2016+2.0%
Q1 2016+2.4%
Q4 2015-7.8%
Q3 2015-6.5%
Q2 2015+1.6%
Q1 2015+4.0%
Q4 2014+3.5%
Q3 2014+6.8%
Q2 2014+1.9%
Q1 2014-2.4%
Q4 2013+2.0%
Q3 2013-0.5%
Q2 2013+0.6%
Q1 2013+3.3%
Q4 2012-0.9%
Q3 2012+4.9%
Q2 2012+6.5%
Q1 2012+0.4%
Q4 2011-0.9%
Q3 2011-3.5%
Q2 2011+1.6%
Q1 2010+1.9%
Q1 2011+3.5%
Q2 2010+0.4%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+1.1%
Q3 2009+1.1%
Q4 2009+1.1%

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