Chip design software firm Synopsys late Wednesday beat analyst estimates for its fiscal third quarter and guided higher than views for the current period. SNPS stock rose in extended trading.
The Sunnyvale, Calif.-based company earned an adjusted $3.43 a share on sales of $1.53 billion in the quarter ended July 31. Analysts polled by FactSet had expected earnings of $3.28 a share on sales of $1.52 billion. On a year-over-year basis, Synopsys earnings rose 27% while sales increased 13%.
For the current quarter ending Oct. 31, Synopsys predicted adjusted earnings of $3.30 a share on sales of $1.63 billion. That's based on the midpoint of its outlook. Wall Street had been modeling earnings of $3.25 a share on sales of $1.62 billion for the fiscal fourth quarter.
"Our strong third-quarter results and expectations for a record year continue to demonstrate the resiliency of Synopsys' business," Chief Executive Sassine Ghazi said in a news release.
He added, "The complexity and pace of technology innovation is accelerating as silicon and systems companies race to capitalize on AI in this era of pervasive intelligence. Synopsys is mission-critical to technology innovation and our customer set is expanding as more companies in more industries define and optimize system performance at the silicon level."
SNPS Stock Is A Long-Term Leader
In after-hours trading on the stock market today, SNPS stock climbed 0.8% to 569. During the regular session Wednesday, SNPS stock advanced 1.4% to close at 564.68.
Synopsys offers silicon-to-systems design solutions, from electronic design automation (EDA) to silicon intellectual property and system verification and validation.
Meanwhile, Synopsys is in the process of buying engineering simulation software firm Ansys for about $35 billion. That deal is expected to close in the first half of 2025, pending regulatory approvals.
SNPS stock is in the IBD Long-Term Leaders Portfolio.
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