NEW YORK (AP) -- Shares of Synopsys rose to their highest point in more than eight years Thursday as the software maker's fiscal third-quarter adjusted results topped Wall Street expectations and its earnings earnings came in above analysts' estimates.
THE SPARK: Synopsys reported on Wednesday that it earned 50 cents per share for the three months ended July 31. Taking out acquisition-related costs and other items, earnings were 55 cents per share. Revenue for the Mountain View, Calif. company increased to $443.7 million from $386.8 million.
Analysts polled by FactSet expected earnings of 50 cents per share on revenue of $443.9 million.
For the full year, Synopsys anticipates adjusted earnings of $2.09 to $2.11 per share on revenue of $1.74 billion to $1.75 billion. It predicts fourth-quarter adjusted earnings of 46 cents to 48 cents per share on revenue of $440 million to $448 million.
Wall Street forecasts full-year earnings of $2.07 per share on revenue of $1.76 billion and fourth-quarter earnings of 48 cents per share on revenue of $451.5 million.
THE ANALYSIS: Cowen and Co.'s Raj Seth said in a client note that Synopsys had a solid third quarter and is seeing strong demand and better bookings.
The analyst maintained an "Outperform" rating.
SHARE ACTION: Synopsys Inc.'s stock gained $1.62, or 5.1 percent, to $33.27 in midday trading. The shares hit $33.92 earlier in the session. That's the highest they've been since February 2004.