Chip Design Software Manufacturer Synopsis (SNPS) on Wednesday night delivered better-than-expected gains in online sales for its fiscal first quarter. But it guided lower views than for the current quarter. SNPS shares fell in extended trading.
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The Mountain View, California-based company earned $2.62 per adjusted share on sales of $1.36 billion in the quarter ended January 31. Analysts polled by FactSet had expected earnings of $2.50 a share on sales of $1.36 billion. Year-over-year, Synopsys’ earnings increased 9%, while sales advanced 7%.
For the current quarter ending April 30, Synopsys predicted adjusted earnings of $2.48 per share on sales of $1.375 billion. That is based on the midpoint of your guide. Wall Street had forecast earnings of $2.56 per share on sales of $1.43 billion in the fiscal second quarter.
For the fiscal year ending October 31, Synopsys expects to earn adjusted earnings of $10.57 per share on sales of $5.8 billion. Analysts had expected earnings of $10.38 per share on sales of $5.81 billion.
SNPS stock is a recent breakout
“Synopsys had a strong start to the year,” Chief Executive Aart de Geus said in a press release. “Based on continued strong design activity, we remain confident in our business.”
In after-hours trading today, SNPS shares fell 3.7% to 365.50. During Wednesday’s regular session, the SNPS stock rose 0.9% to close at 379.48.
On February 1, SNPS shares broke off a cup-handle bottom at a buy point of 364.09, according to IBD MarketSmith charts.
The company ranks third among 12 stocks in IBD’s computer software design industry group, according to IBD Stock Checkup. He has an IBD composite score of 93 out of 99.
The IBD Composite Rating is a combination of key fundamental and technical metrics to help investors assess a stock’s strengths. The best growth stocks have a composite rating of 90 or better.
In addition, SNPS shares are in IBD’s long-term leaders’ portfolio, along with its industry peers. cadence design systems (CDNS).
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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