Synopsys reported Tuesday third-quarter results that missed analysts’ forecasts and soft earnings guidance as U.S. restrictions on chipmaking equipment to China weighed on demand.
Synopsys Inc (NASDAQ:SNPS) fell more than 10% in recent afterhours trade following the report.
For the three months ended Jul. 31, Synopsys announced adjusted earnings per share of $3.39 on revenue of $1.74B. Analysts polled by Investing.com anticipated EPS of $3.8 on revenue of $1.77B.
The miss comes as the company suffered from U.S. restrictions on sales of chipmaking equipment to China in late May, though the ban on these restrictions were rescinded on Jul. 2.
For Q4, the company guided adjusted EPS in a range of $2.76 to $2.80 and revenue of $2.23B to $2.26B, compared with expectations for $4.14 and $2.59B respectively.
For fiscal year 2025, the company guided adjusted EPS in a range of $12.76 to $12.80 and revenue of $7.03B to $7.06B, compared with expectations for $14.58 and $7.45B respectively.
"While I’m proud of how our team navigated external challenges in the quarter, our IP business underperformed expectations," the company said.
Source :
https://www.investing.com/news/earnings/synopsys-reports-soft-earnings-guidance-as-q3-results-miss-amid-china-chip-ban-4232215
