Synopsys raises full-year earnings guidance
Synopsys (SNPS) posted first-quarter adjusted earnings per share that were better than Wall Street was expecting, $3.56 compared to the estimate of $3.43. Revenue of $1.65 billion was in line with estimates. The tech company also raised its full-year adjusted earnings per share guidance to $13.47 to $13.55. It had been $13.33 to $13.41.
Yahoo Finance's Julie Hyman and Josh Lipton break down the report.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JULIE HYMAN: Synopsys numbers just crossing up 3.5% here. That company beating estimates, it looks like, on the bottom line. Earnings per share of $3.56. $3.43 is what analysts had been anticipating. Not changing its full year revenue forecast at this point. It is, it looks like, leaves it room to beat to meet estimates or miss estimates. So not raising it, maybe that could end up being a source of disappointment. But for right now, the shares continue to move higher.
Just a reminder here, Synopsys, a company that sort of services the semiconductor industry, does testing, does architecture support for the industry. And we're going to be speaking, by the way, to the CEO of the company, Sassine Ghazi, tomorrow to talk more about all of this to find out sort of how they are leaning into the AI boom.
Last quarter, we learned that they were getting about 10% of their revenue linked to AI. So we'll find out if that is changed at all, if it's a bigger segment, and what that growth trajectory looks like here. So we'll keep digging into the numbers. And we'll talk to him about that tomorrow.
JOSH LIPTON: Yeah. Another one going be interesting, of course, is that the big acquisition with Ansys and how they're going to-- I always thought that the closing date there was sort of interesting, Julie. What they gave us was kind of lengthy, because they were saying kind of first half of 2025. And so I guess that does that suggest they actually do expect some regulatory pushback will be another interesting question.
JULIE HYMAN: Yes, it will.
