Synopsys (SNPS) fell sharply Thursday after the chip design company reported a weaker-than-expected outlook.
Synopsys reported adjusted fiscal fourth-quarter earnings of $3.40 a share on revenue of $1.64 billion, with year-over-year gains of 13% and 11%, respectively. Analysts were expecting $3.30 a share on revenue of $1.63 billion. But fiscal Q1 2025 revenue guidance of $1.45 billion at the midpoint was lower than expected.
↑ XThe company's 2025 outlook also was "a bit weak" at $6.78 billion at the midpoint compared to median view of $6.9 billion, Morningstar analyst Eric Compton said in a client note.
The heightened focus on AI had lifted Synopsys stock. "We build the tools that allow people to build the leading-edge chips," Synopsys Chief Financial Officer Shelagh Glaser told Investor's Business Daily in May.
But the company's forecast appears to have spooked investors. Synopsys stock, which moved an aggressive entry on Wednesday just ahead of results, plunged nearly 12% Thursday to below its 50-day and 200-day moving averages.
Synopsys rival Cadence Design Systems (CDNS) shed more than 5%, just undercutting a buy point.
However, some analysts remained optimistic about Synopsys.
"We also reiterate our belief in key tailwinds driving double-digit percentage revenue growth for years to come, including increasing silicon proliferation, robust demand from systems companies, and increasing demand from artificial intelligence chip design starts," Compton wrote. He raised his price target to $550 from $490.
Needham's Charles Shi, who has a buy rating and a $640 price target, said the stock slide signals an opportunity.
"While the print is imperfect, we think the pullback will create another buying opportunity for investors who missed the postelection rally in Synopsis," he said in a client note.
YOU MAY ALSO LIKE:
The Weight-Loss Battle That Could Rattle Eli Lilly's $100 Billion Market
Intel Board Blasted For Handling Of CEO's Sudden Exit As Stock Falls Again
SentinelOne Stock Tumbles Amid Revenue Beat As Guidance Underwhelms
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。