SNPS Stock News: Chip Design Software Firm Synopsys Trounces Earnings Targets

Chip design software maker Synopsys (SNPS) late Wednesday trounced Wall Street’s targets for its fiscal

Chip design software maker Synopsys (SNPS) late Wednesday trounced Wall Street’s targets for its fiscal second quarter. It also guided higher for the current quarter and full year. SNPS stock rose in extended trading.




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The Mountain View, Calif.-based company earned an adjusted $1.70 a share on sales of $1.02 billion in the quarter ended April 30. Analysts expected Synopsys earnings of $1.52 a share on sales of $988.7 million. On a year-over-year basis, Synopsys earnings rose 39% while sales climbed 19%.

For the current quarter, Synopsys expects to earn an adjusted $1.78 a share on sales of $1.045 billion. That’s based on the midpoint of its outlook. Wall Street had predicted earnings of $1.58 a share on sales of $1.01 billion in the fiscal third quarter. In the year-earlier period, Synopsys earned $1.74 a share on sales of $964.1 million.

For the full fiscal 2021, Synopsys forecast adjusted earnings of $6.42 a share on sales of $4.06 billion. Analysts had been looking for earnings of $6.28 a share on sales of $4.03 billion. In fiscal 2020, it earned an adjusted $5.55 a share on sales of $3.69 billion.

SNPS Stock Rises On Earnings News

In after-hours trading on the stock market today, SNPS stock advanced 1.5%, near 241. During the regular session Wednesday, SNPS stock rose 1% to 237.36.

“Market demand is strong, and we see a new wave of growth on the horizon, driven by an increasing need for highly complex, connected, specialized, and secure chips and systems,” Co-Chief Executive Aart de Geus said in a news release. “Recent transformative technology innovations position us particularly well to enable this new era.”

Synopsys makes software for designing semiconductors. It also has a growing business in tools for assuring quality and security in software applications.

SNPS stock has been consolidating for the past 14 weeks with a buy point of 301.01, according to IBD MarketSmith charts.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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