Synopsys Q3 Results Beat Street View, Lifts Outlook; Shares Up 4%

(RTTNews) - Synopsys Inc. (SNPS) Wednesday reported a third-quarter profit and revenues that trumped Wall Street analysts' estimates. Moving ahead, the company lifted its full year financial outlook. Shares of the company jumped over 4% in the after hours trade.

Synopsys' net income for the third quarter was $252.9 million or $1.62 per share, up from $99.9 million or $0.65 per share last year.

On an adjusted basis, net income for the quarter was $271.9 million or $1.74 per share, up from $182.5 million or $1.18 per share last year. On average, 13 analysts polled by Thomson Reuters expected earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter rose to $964.1 million from $853.0 million last year. Analysts had a consensus revenue estimate of $894.12 million.

"We saw double-digit revenue growth across all product groups and strength in all geographies. Our intense, multi-year innovation push is driving increased momentum in product successes and production adoptions," said Aart de Geus, chairman and co-CEO of Synopsys.

Looking forward to the fourth quarter, Synopsys expects adjusted earnings of $1.51 to $1.56 per share and revenues of $1.0 billion to $1.03 billion. Analysts currently estimate earnings of $1.69 per share on revenues of $1.04 billion.

For the full year 2020, the company expects adjusted earnings of $5.48 to $5.53 per share and revenues of $3.66 billion to $3.69 billion. Analysts currently estimate earnings of $5.27 per share on revenues of $3.63 billion.

Previously, the company expected adjusted earnings of $5.21 to $5.28 per share and revenues of $3.60 billion to $$3.65 billion.

"Due to our very strong fiscal third quarter, confidence in our outlook and resilient business model, we are raising 2020 revenue, operating margin, non-GAAP earnings-per-share and operating cash flow targets," de Geus said.

SNPS closed Wednesday's trading at $198.22, down $1.87 or 0.93%, on the Nasdaq. The stock, however, gained $8.44 or 4.26%, in the after-hours trade.