PARA to Post Q4 Earnings: Key Metrics and Expectations to Watch

Synopsys SNPS is scheduled to report first-quarter fiscal 2025 results on Feb. 26, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Synopsys expects non-GAAP earnings per share between $2.77 and $2.82. The Zacks Consensus Estimate for fiscal first-quarter earnings is pinned at $2.81 per share, which indicates a year-over-year decline of 21%.

The company anticipates revenues between $1.435 billion and $1.465 billion for the fiscal first quarter. The Zacks Consensus Estimate is pegged at $1.45 billion, which suggests a decline of 11.9% from the year-ago period's reported figure.

In the trailing four quarters, SNPS’ earnings surpassed the Zacks Consensus Estimate thrice while missing the same on one occasion, with an average surprise of 2.68%.

Synopsys, Inc. Price and EPS Surprise

Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote

Factors Influencing Synopsys’ Q1 Results

Synopsys’ fiscal first-quarter performance is likely to have benefited from the rising demand for its extensive product portfolio. The growing need for high-performance cloud computing, propelled by the evolving hybrid work environment, is expected to have boosted demand for the company's Intellectual Property (IP) solutions.

Increased adoption of Synopsys.ai among chip manufacturers and vendors is anticipated to have boosted top-line growth during the reported quarter. Additionally, the long-term collaboration with TSMC aimed to deliver advanced EDA and IP solutions on TSMC’s most advanced process and 3DFabric technologies to accelerate innovation for AI and multi-die designs is expected to have been a major positive.

The surge in global design activity and heightened user engagement are expected to have significantly driven SNPS’ performance in the fiscal first quarter. Growing adoption of its interface and foundation IP solutions, along with contract wins and the use of the Fusion Platform, including the Fusion Compiler, is anticipated to have positively impacted SNPS’ fiscal first-quarter performance.

The increasing use of AI, IoT, 5G and cloud technology is likely to have driven demand for Synopsys’ solutions in the to-be-reported quarter. Additionally, robust design investments in Synopsys’ ARC processors by automotive companies, as well as the strong adoption of security solutions for interfaces like CXL, PCI Express and DDR, are likely to aid its first-quarter results.

However, tightening budgets among corporations due to ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the positive impacts of the growth drivers.

What Our Model Says About SNPS

Our proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though SNPS currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Marvell Technology MRVL, ODDITY ODD and IonQ IONQ are some stocks that have a favorable combination.

Marvell Technology has an Earnings ESP of +2.77% and a Zacks Rank #2 at present. MRVL shares have gained 51.3% in the trailing 12-month period. MRVL is set to report its fourth-quarter 2024 results on March 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

ODDITY has an Earnings ESP of +4.00% and a Zacks Rank #3 at present. ODD shares have rallied 9.9% in the trailing 12-month period. ODD is slated to report its fourth-quarter 2024 results on Feb. 25.

IonQ has an Earnings ESP of +35.14% and a Zacks Rank #3 at present. IONQ shares have gained 182.4% in the trailing 12-month period. IONQ is scheduled to report its fourth-quarter 2024 results on Feb. 26.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

European equities traded in the US as American depositary receipts started the week modestly higher late Monday morning, rising 0.28% to 1,406.36 on the S&P Europe Select ADR Index.

From continental Europe, the gainers were led by accommodations booking site trivago and financial services company Banco Santander , which rose 3.9% and 2.2% respectively. They were followed by financial services company Banco Bilbao Vizcaya Argentaria , which was up 0.4%.

The decliners from continental Europe were led by internet browser company Opera and biopharmaceutical company DBV Technologies , which dropped 67.6% and 6.6% respectively. They were followed by 3D printer company Materialise and biotech firm Evaxion Biotech E, which lost 3.4% and 3.2% respectively.

From the UK and Ireland, the gainers were led by telecommunications operator Vodafone Group and utilities company National Grid , which advanced 3.5% and 1.6% respectively. They were followed by pharmaceutical company GSK and cruise line operator Carnival , which increased 1.8% and 1.5% respectively.

The decliners from the UK and Ireland were led by biopharmaceutical companies NuCana and TC Biopharm , which fell 7.1% and 7.2% respectively. They were followed by biopharmaceutical companies Biodexa Pharmaceuticals B and Verona Pharma , which were down 4.3% and 4.4% respectively.

Vertex, Inc. VERX is scheduled to report fourth-quarter 2024 results before market open on Feb. 27.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for Vertex’s fourth-quarter 2024 earnings is pegged at 14 cents per share, implying a year-over-year increase of 7.7%.

Vertex’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.8%.

Vertex expects its fourth-quarter 2024 revenues to be in the range of $175-$178 million. The Zacks Consensus Estimate for Vertex’s fourth-quarter 2024 revenues is pegged at $176.6 million, suggesting year-over-year growth of 14%.

Let’s see how things have shaped up for this announcement.

Vertex, Inc. Price and EPS Surprise

Vertex, Inc. price-eps-surprise | Vertex, Inc. Quote

Factors to Consider for VERX

Vertex’s fourth-quarter 2024 performance is likely to have benefited from increasing demand for its tax automation solutions as companies are moving from legacy ERP systems to modern cloud-based solutions. Increased adoption of Vertex’s tax automation solution is likely to have expanded its client roster and improved its top-line growth.

VERX’s transition to cloud-based solutions is likely to have proved to be a major growth driver for the company. Growing demand for flexible, scalable, and cost-efficient tax compliance tools is likely to have boosted cloud sales to new customers driving its top-line growth in the to-be-reported quarter.

Vertex’s shift from one-time software licenses to subscription-based SaaS models is likely to have contributed to its recurring revenues in the to-be-reported quarter. Additionally, new global e-invoicing mandates, particularly in France and Germany, are likely to boost the adoption of Vertex’s integrated tax compliance and invoicing solutions generating additional revenues for Vertex in the to-be-reported quarter.

The latest additions of features to its platform, including Vertex for Salesforce Revenue Cloud and Vertex Copilot, are likely to have expanded its reach among potential customers, hence contributing to the top-line growth in the to-be-reported quarter.

What Our Model Says About VERX

Our proven model does not conclusively predict an earnings beat for VERX this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though VERX currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Marvell Technology MRVL, ODDITY ODD and IonQ IONQ are some stocks that have a favorable combination.

Marvell Technology has an Earnings ESP of +2.77% and a Zacks Rank #2 at present. MRVL shares have gained 51.3% in the trailing 12-month period. MRVL is set to report its fourth-quarter 2024 results on March 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

ODDITY has an Earnings ESP of +4.00% and a Zacks Rank #3 at present. ODD shares have rallied 9.9% in the trailing 12-month period. ODD is slated to report its fourth-quarter 2024 results on Feb. 25.

IonQ has an Earnings ESP of +35.14% and a Zacks Rank #3 at present. IONQ shares have gained 182.4% in the trailing 12-month period. IONQ is scheduled to report its fourth-quarter 2024 results on Feb. 26.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

By Bill Peters

Earnings Watch: Nvidia's profit 'could have enough substance even if less sizzle,' BofA analysts say. Retailers Home Depot and TJX also report.

Shares of Nvidia Corp., the chip-making giant at the core of the artificial-intelligence boom, have recovered - somewhat - from the hit they took during the market's DeepSeek tantrum last month. But as the $3.4 trillion company prepares to report fourth-quarter results on Wednesday, Wall Street has other anxieties.

For one, as MarketWatch noted last week, the results will offer a closer look at its new Blackwell chip architecture. Production has ramped up, but the products have faced concerns over shortages, delays and issues with overheating that have reportedly prompted big customers put off orders.

Those issues have raised questions over Nvidia's (NVDA) near-term financials. And those questions have arrived as investors reckon with the prospect of slower growth from the company and other Big Tech players that have gone all in on AI - generally by spending billions and loading up on Nvidia's chips.

BofA analysts, in a note this month, said Nvidia's results will mark the "next important test for AI bulls," adding that the company's per-share profit "could have enough substance even if less sizzle."

"The stock could be volatile postresults, but we expect positive momentum to resume as investors look forward to [Nvidia]'s leading new product pipeline (GB300, Rubin) and [total addressable market] expansion into robotics and quantum technologies," they wrote.

Such volatility arrived when DeepSeek, a China-based AI platform, stunned markets with the suggestion that it could provide AI that functioned as well as popular counterparts like ChatGPT - but with far less money and energy, and fewer chips, than what Big Tech's development roadmap has called for. The idea of cheaper AI upended prevailing assumptions around the technology - namely, that you needed a lot of money and processing power to make it better.

Executives at the other megacap tech companies like Meta Platforms Inc. (META) and Amazon.com Inc. (AMZN) generally responded that DeepSeek presents an opportunity to learn, innovate and possibly bring down costs. However, Amazon Chief Executive Andy Jassy noted this month that lower costs didn't necessarily mean that tech companies would spend less as they race to strengthen their footing in AI.

Either way, Nvidia's stock is still up more than 70% over the past 12 months while, outside of Big Tech, stronger growth in the rest of the S&P 500 SPX has still been harder to find. And not everyone believes DeepSeek can do what it says it can.

"DeepSeek is high in novelty claims but time will tell whether it creates a disruption in current AI models and AI architectures," Dan Morgan, senior portfolio manager at Synovus, said in a note Thursday.

This week in earnings

During the week, media and entertainment giant Paramount Global (PARA) reports results, as President Donald Trump presents a potential roadblock in its efforts to merge with Skydance Media. Rival Warner Bros. Discovery Inc. (WBD) also reports.

As inflation keeps consumers picky about dining out, we'll hear more about it from pizza chains Domino's Pizza Inc. (DPZ) and Papa John's International Inc. (PZZA), as well as fast-casual chain Cava Group Inc. (CAVA) Salesforce Inc. (CRM) will also report earnings as it pushes its new AI "agents."

Elsewhere, results are due from Zoom Communications Inc. (ZM), Chegg Inc. (CHGG), Planet Fitness Inc. (PLNT), Intuit Inc. (INTU), Instacart (CART), AMC Entertainment Holdings Inc. (AMC) and Bath & Body Works Inc. (BBWI)

The calls to put on your calendar

Home Depot: Home-improvement retailer Home Depot Inc. (HD) reports quarterly earnings on Tuesday. As always, the results will be a proxy for home-buying demand, at a time when high mortgage rates have brought that market to a standstill. But Trump's tariffs could also come up during the conference call, as the company - which says it gets a majority of its products from North America - tries to source more from a wider variety of places. The results will also follow those from retail bellwether Walmart Inc. (WMT), which just forecast its first quarterly profit drop in three years.

Lowe's Cos. Inc. (LOW), one of Home Depot's main rivals, also reports. Off-price retailer TJX Cos. (TJX) and clothing retailer Urban Outfitters Inc. (URBN) will issue results as well.

The number to watch

The outlook for Hims & Hers and GLP-1s: On Friday, the Food and Drug Administration declared that the Ozempic and Wegovy shortage is basically over. That wasn't such great news for wellness-product platform Hims & Hers Inc. (HIMS), which sells alternative versions of those drugs and whose shares were hit hard by the agency's announcement. The results and outlook from the company, due Monday, could offer a clearer sense of the impact.

-Bill Peters

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.