ANSYS
ANSS
electromagnetic (or “EM”) simulation tools are adopted by Samsung to advance the development of latest on-chip designs, including 5G/6G, on advanced chips, nodes, and process technologies to boost high-speed connectivity.
The company’s software solutions have automation capabilities to optimize calculations and modeling as well as enhanced capacity, which will aid Samsung in speeding up the design process, added ANSYS.
By implementing Ansys RaptorX, Ansys VeloceRF, and Ansys Exalto solutions, Samsung will be able to cut down the time to market by two to three weeks on smaller designs and up to two months for complex designs, noted ANSYS.
ANSYS’ EM solutions will also help Samsung designers to easily model complex on-chip scenarios like dummy tiles, which consist of millions of metal pieces in a fraction of the time. ANSYS EM solutions also feature near real-time modeling capabilities that protect designs from EM interference and reduce chances of chip failure.
Higher Demand for Simulation Software Bodes Well
Canonsburg, PA-based ANSYS is the global leader in the high-end design simulation software industry. The company offers simulation solutions for developing next-generation 5G product designs, autonomous vehicles (AVs), thinner and more reliable mobile and Internet of Things (IoT) products and high-performance chips for advanced driver assistance systems.
The company’s software solutions are used by well-known manufacturing companies, including Samsung and LG. Virtual prototyping, instead of physical prototyping, helps these companies save considerable money, driving demand for simulation software solutions. The company’s robust product portfolio and cross-domain offering will continue to drive the customer base going ahead.
According to a Grand View Research report
, the global simulation software market is expected to witness a CAGR of 13.5% from 2022 to 2030.
In the last reported quarter, the company’s non-GAAP revenues of $428.6 million surpassed the Zacks Consensus Estimate by 5.5%. The top line increased 15% (up 18% at constant-currency or cc) from the year-ago quarter.
Higher adoption of ANSYS’ simulation solutions in the various verticals like aerospace & defense, high tech, ground transportation and automotive is driving the top-line performance. Increases in chip designing activity in the semiconductor space is another tailwind.
For second-quarter 2022, ANSYS expects non-GAAP earnings of $1.46-$1.64 per share. Non-GAAP revenues are anticipated to be between $450 million and $475 million. Management projects a non-GAAP operating margin of 36-38.1%.
The Zacks Consensus Estimate for revenues and earnings for the second quarter is pegged at $466.1 million and $1.62 per share, respectively.
The stock has declined 28.6% in the past year against the
industry
’s decline of 13.2%.
Zacks Rank & Stocks to Consider
Currently, ANSYS carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader technology sector worth consideration are
Synopsys
SNPS
,
Aspen Technology
AZPN
and
Broadcom
AVGO
. All stocks sport a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 4% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 2.2%. Shares of AVGO have gained 3.8% of their value in the past year.
The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.47 per share, rising 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.
Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have increased 13.8% in the past year.
The Zacks Consensus Estimate for Aspen’s fiscal 2022 earnings is pegged at $5.50 per share, rising 1.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.4%.
Aspen’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 4.1%. Shares of AZPN have grown 29.1% in the past year.
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