Synopsys stock dips on narrow Q2 earnings beat

Synopsys, Inc. (SNPS) shares dip in after-hours trading after narrowly beating its fiscal second-quarter earnings — $1.46 billion in revenue and adjusted earnings of $3.00 per share. Yahoo Finance's Market Domination Overtime comments on the outlook of the chip-adjacent company and what it can gain from continued AI trends.

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This post was written by Luke Carberry Mogan.

Video transcript

Well, we've got some earnings today from synopsis, not in video yet.

Synopsis, that software company, uh those shares are down by 4% and that's after synopsis actually cut its forecast for the full year here.

So that seems to be weighing on the shares.

Um This is the company also announced it got shareholder approval for its acquisition of Ansis, what it which announced a couple of months ago.

So if you look at those synopsis numbers for the full year now expecting 6.09 billion to $6.15 billion in revenue, 6.57 to 6.63 is what was estimated there.

So cutting it close to what analysts had been expecting actually.

Um and the company also for its second quarter, its earnings per share did beat estimates at $3 and revenue did rise 4.3% roughly in line with estimates at $1.45 billion.

But this is one of these companies when we talk about these ecosystems around A I and around this is one of those companies.

Not that much of its business is A I yet, but it's in the semiconductor sort of ecosystem.

Yeah, they provide software to help engineers, design, architect, verify chips A I, you know, it, it was interesting though Julie before this print, you saw some analysts um I think at Bloomberg, for example, arguing it, it is one of those names that where A I should be a long term tail wind because the A I solution um these analysts were arguing is is gaining traction with customers.

Another issue, you know, NVIDIA, I don't know.

Have you uh heard that we're mentioning that a bit, that name, right?

NVIDIA.

Um Remember synopsis recently told us to actually now working with NVIDIA not too long ago, basically helping NVIDIA develop chips faster uh essentially.

So it'll be interesting how much that's talked about in the call as well.

Yeah, and uh C seen Ghazi in the statement talking about customers continue to invest in synopsis to maximize their R and D and power future innovation.

So, um you know, the shares are down, but he's sort of striking an optimistic tone and we're gonna get more from sin by the way because we are going to be speaking to him tomorrow.

Synopsis, Ceo Cecin Ghazi will be joining us on the program.