SNPS Stock Jumps On Earnings Report

Synopsys (SNPS) reported quarterly results late Wednesday that beat estimates on the top and bottom lines. SNPS stock climbed.

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The company reported adjusted earnings of $2.10 a share on revenue of $1.25 billion. Analysts expected Synopsys to report earnings of $1.99 a share on revenue of $1.2 billion. The results were for the company’s fiscal third quarter.

SNPS stock rose 2.6% to 391 during after-hours trading on the stock market today.

Synopsys has a 98 Composite Rating and holds the No. 2 rank among its peers in the Computer Software-Design industry group. Cadence Design Systems (CDNS) is the No. 1-ranked stock within the group.

The company provides electronic design automation software companies use for developing electronic products and software applications.

SNPS Stock: 20% Revenue Growth

“Synopsys continues to execute very well,” Chief Executive Aart de Geus said in prepared remarks with the Synopsys earnings release.

“We expect to cross the $5 billion revenue mark in FY ’22, with over 20% revenue growth, strong margin expansion and EPS growth, and more than $1.6 billion in operating cash flow,” he said. “Technology strength across the board, including multiple game-changing innovations, drove outstanding technical, competitive, and business results.”

SNPS stock is near a buy point.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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