It has been about a month since the last earnings report for Synopsys (SNPS). Shares have added about 10.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Synopsys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Synopsys' Q4 Earnings and Revenues Beat EstimatesSynopsys’ fourth-quarter fiscal 2020 non-GAAP earnings of $1.58 per share beat the Zacks Consensus Estimate by 0.6%. Moreover, the figure improved 37.4% year over year.Further, revenues increased 20.5% year over year to $1.03 billion and surpassed the Zacks Consensus Estimate by 0.5%, driven by significant contributions from Electronic design automation (EDA), and IP and Systems Integration business segments.The company is benefiting from increasing global design activities and customer engagements. The rising trend of machine learning, AI, 5G, IoT, Cloud, and the proliferation of Smart Everything are boosting demand for its advanced solutions.Moreover, robust adoption of the company’s Verification Continuum Platform and Fusion Compiler product within Fusion Design Platform was a major growth driver in the fourth quarter. Additionally, Fusion Complier witnessed an order growth of 140% in fiscal 2020.Further, growing traction of Synopsys’ ARC processor in the automotive space has been a major positive in the recently-concluded quarter. Moreover, in 2020, the company won more than 400 customers across 30 semiconductor companies, for its advanced processes. Its enterprise clientele widened to contribute 75% to revenues.Quarter in DetailTime-Based Product revenues (59.2% of total revenues) of $606.6 million were up 10.6% year over year. Maintenance and Service revenues (17%) improved 30% to $174.7MILLION. Upfront Product revenues (23.8%) grew 45% to $244.2 million.Segment-wise, Semiconductor & System Design revenues (91.1% of total revenues) were $934.6 million, up 22% year over year. Within the segment, EDA revenues (56.6% of revenues) were $580.5 million and IP & Systems Integration revenues (34.3% of revenues) came in at $351.9 million. Software Integrity revenues totaled $90.8 million, contributing approximately 8.9% to the top line in the reported quarter.Geographically, Synopsys’ revenues in North America (52.4% of total) were $536.9 million and $107.3 million in Europe (10.5%). Revenues from Japan (7.6%), Korea (9.5%) and the Asia Pacific (20.1%) came in at $77.6 million, $97.8 million and $205.8 million, respectively.Non-GAAP operating margin was 29.2%, expanding 440 basis points (bps) year over year. Semiconductor & System Design delivered an adjusted operating margin of 31.4%, up 500 bps year over year, while Software Integrity margin contracted 420 bps year over year to 6.8%.Fiscal 2020 HighlightsSynopsys reported fiscal 2020 earnings of $5.55 per share, which is in line with the Zacks Consensus Estimate. Moreover, the figure grew 21.7% year over year.Further, revenues for fiscal 2020 grew 9.7% year over year to $3.69 billion and beat the Zacks Consensus Estimate by 0.1%.Balance Sheet & Cash FlowSynopsys had cash and cash equivalents of $1.24 billion as of Oct 31 compared with $1.05 billion as of Jul 31.Total debt came in at $127.9 million in the reported quarter compared with the previous quarter’s $131.4 million.Operating cash flow in fiscal 2020 was $991.3 million.GuidanceFor first-quarter fiscal 2021, the company’s revenues are expected to be $935-$965 million. Management expects non-GAAP earnings between $1.44 and $1.49 per share. Non-GAAP expenses are anticipated to be $674-$684 million.For fiscal 2021, management projects revenues at $4-$4.05 billion. Non-GAAP earnings for the fiscal year are expected between $6.23 and $6.3 per share. Operating cash flow is expected between $1.2 and $1.3 billion.Further, management expects strong demand for the company’s advanced solutions and cloud computing services along with growing customer acceptance for its new capabilities to drive growth for its robust product portfolio.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision.VGM ScoresAt this time, Synopsys has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Synopsys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synopsys, Inc. (SNPS): Free Stock Analysis Report To read this article on Zacks.com click here.