Shares of Synopsys got a boost in post-market trading Wednesday after it released fiscal third-quarter earnings that beat estimates, while also announcing a plan to transition to a new chief executive. SNPS stock climbed on the news.
In earnings released after the market close, the Mountain View, Calif.-based chip design firm said it earned an adjusted $2.88 a share on sales of $1.49 billion during the quarter ended July 30. Analysts polled by FactSet had expected Synopsys to earn an adjusted $2.74 per share on sales of $1.48 billion.
Sales for the quarter marked an 19% increase from the year-ago period. SNPS stock gained 2.3% to 437.99 in post-session trading on the stock market today.
"We achieved another record quarter as semi design starts and R&D investments continue, unabated, to capitalize on the AI-driven, 'Smart Everything' era," said Aart de Geus, chair and CEO of Synopsys, in a written statement with the earnings release.
The company said Sassine Ghazi will take over for de Geus as president and CEO, effective on Jan. 1. Ghazi currently serves as Synopsys' president and chief operating officer. Meanwhile, de Geus will transition to executive chair of Synopsys' board, the company said.
Synopsys also boosted its outlook for the rest of its fiscal year, which ends in October. The company projects adjusted earnings per share between $11.04 and $11.09 for the 12-month period, up from the $10.77 to $10.84 range the company gave in its previous quarterly earnings report.
SNPS Stock: Earnings Beat Follows Expanded Intel Partnership
Synopsys is a leading provider of electronic design automation software used to make semiconductors.
The company this week announced an expanded partnership with Intel, in which foundry customers of the chip giant can license intellectual property from Synopsys. SNPS stock edged up by 1.5% on Monday, the day Intel announced the partnership.
SNPS stock ranks third out of 12 stocks in IBD's Computer Software-Design industry group, according to IBD Stock Checkup.
Synopsys has an IBD Composite Rating of 93 out of 99. The best growth stocks have a Composite Rating of 90 or better.
Also, SNPS stock is in the IBD Long-Term Leaders Portfolio and on the IBD Tech Leaders stock list.
