For the quarter ended January 2025, Synopsys (SNPS) reported revenue of $1.46 billion, down 11.8% over the same period last year. EPS came in at $3.03, compared to $3.56 in the year-ago quarter.

The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $1.45 billion. With the consensus EPS estimate being $2.81, the EPS surprise was +7.83%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Synopsys performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Maintenance and service: $258.95 million versus the four-analyst average estimate of $264.09 million. The reported number represents a year-over-year change of -12.8%.
• Revenue- Total products revenue: $1.20 billion versus the four-analyst average estimate of $1.19 billion. The reported number represents a year-over-year change of -11.5%.
• Revenue by segment- Design IP: $435.10 million compared to the $425.91 million average estimate based on three analysts. The reported number represents a change of -17.2% year over year.
• Revenue by segment- Design Automation: $1.02 billion versus $1.02 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.
• Revenue- Upfront products: $368.12 million compared to the $395.06 million average estimate based on three analysts. The reported number represents a change of -17.8% year over year.
• Revenue- Time-based products: $828.24 million versus the three-analyst average estimate of $783.55 million. The reported number represents a year-over-year change of -8.4%.

View all Key Company Metrics for Synopsys here>>>

Shares of Synopsys have returned -13% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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

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