Synopsys Inc (SNPS) released its second quarter results on Thursday, May 20, 2021. The company reported net earnings of $1.24 per share for the second quarter ending April 30, 2021. Earnings for this past quarter were up 74 percent compared to the same period a year ago.
Synopsys, Inc. was founded in 1986 and is headquartered in Mountain View, California. Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It offers Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.
Synopsys' revenue increased 17 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins decreased to 80.22% for the second quarter compared to the same period in the previous year, and operating margins increased to 18.96% over the same period. Net earnings for past trailing twelve months were $807.79 million, up 70% from the prior year.
Moving on to the balance sheet, Synopsys' cash levels jumped 70% for the second quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 24.93% this past year. The current ratio for Synopsys now stands at 1.19. The company increased shares outstanding by 1.09%.
Shares of SNPS are currently trading around $244.71. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 47.51 and price to book ratio of 7.55.
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This article was written by Value Investing News (https://www.valueinvestingnews.com) on Friday, May 21, 2021.