Chip design software firm Synopsys late Wednesday topped analyst estimates for earnings on in-line sales for its fiscal first quarter. For the current quarter, it guided higher than views for both earnings and sales. SNPS stock rose in extended trading.
The Sunnyvale, Calif.-based company earned an adjusted $3.56 a share on sales of $1.65 billion in the quarter ended Jan. 31. Analysts polled by FactSet had expected earnings of $3.43 a share on sales of $1.65 billion. On a year-over-year basis, Synopsys earnings surged 36%, while sales increased 21%.
For the current quarter ending April 30, Synopsys forecast adjusted earnings of $3.12 a share on sales of $1.58 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $3 a share on sales of $1.56 billion in the fiscal second quarter. In the year-earlier period, Synopsys earned $2.54 a share on sales of $1.4 billion.
For the full year ending Oct. 31, Synopsys predicted adjusted earnings of $13.51 a share on sales of $6.6 billion, based on the midpoint of its outlook. Analysts had been expecting earnings of $13.46 a share on sales of $6.62 billion.
SNPS Stock Rises After Report
In after-hours trading on the stock market today, SNPS stock rose 3% to 560. During the regular session Wednesday, SNPS stock dipped 0.8% to close at 543.57.
On Feb. 5, SNPS stock broke out of a cup-with-handle base at a buy point of 554.57, according to IBD MarketSmith charts. Since then, it has bobbed and weaved in and out of the 5% buy zone. It hit a regular-session record high of 582.85 on Feb. 9.
"AI continues to drive our customers' investments in silicon and systems," Chief Executive Sassine Ghazi said in a news release.
He added, "In the face of mounting design complexity, technology R&D teams are counting on Synopsys' broad portfolio of semiconductor IP (intellectual property) and leading design solutions from silicon to systems."
Synopsys Is On 3 IBD Lists
On Jan. 16, Synopsys announced plans to acquire engineering simulation software firm Ansys for about $35 billion. The deal will combine Synopsys' semiconductor and electronic design automation technology with Ansys' simulation and analysis portfolio to create a leader in "silicon-to-systems design solutions," the companies said. The transaction is due to close in the first half of 2025.
SNPS stock is on three IBD stock lists: Big Cap 20, Long-Term Leaders and Tech Leaders.
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