Synopsys (NASDAQ:SNPS) Issues Quarterly Earnings Results, Misses Estimates By $0.56 EPS

Synopsys (NASDAQ:SNPS) issued its quarterly earnings results on Wednesday. The semiconductor company reported $2.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.81 by ($0.56), Zacks reports. Synopsys had a return on equity of 20.48% and a net margin of 36.12%. Synopsys updated its FY 2025 guidance to 14.880-14.960 EPS and its Q2 2025 guidance to 3.370-3.420 EPS.

Synopsys Trading Up 2.7 %

NASDAQ:SNPS traded up $12.51 during mid-day trading on Wednesday, hitting $470.46. The company had a trading volume of 1,532,766 shares, compared to its average volume of 1,109,050. Synopsys has a 1 year low of $457.00 and a 1 year high of $624.80. The business has a fifty day simple moving average of $508.09 and a 200-day simple moving average of $516.89. The firm has a market capitalization of $72.72 billion, a price-to-earnings ratio of 32.40, a PEG ratio of 3.23 and a beta of 1.12.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SNPS shares. Morgan Stanley decreased their target price on shares of Synopsys from $625.00 to $590.00 and set an “overweight” rating on the stock in a research report on Monday. Needham & Company LLC reiterated a “buy” rating and issued a $640.00 price target on shares of Synopsys in a report on Thursday, December 5th. Redburn Atlantic initiated coverage on shares of Synopsys in a research note on Monday, January 13th. They set a “buy” rating and a $600.00 price objective for the company. Wells Fargo & Company cut their target price on Synopsys from $570.00 to $540.00 and set an “equal weight” rating on the stock in a research report on Monday, January 13th. Finally, Loop Capital assumed coverage on Synopsys in a research report on Monday, November 11th. They set a “buy” rating and a $675.00 price target for the company. One equities research analyst has rated the stock with a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $639.58.

Insider Activity

In related news, CRO Richard S. Mahoney sold 20,838 shares of the business’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $506.01, for a total transaction of $10,544,236.38. Following the transaction, the executive now directly owns 1,460 shares of the company’s stock, valued at approximately $738,774.60. The trade was a 93.45 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 0.66% of the company’s stock.

Synopsys Company Profile

Synopsys, Inc provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions.