What happened
Shares of semiconductor design and testing software company Synopsys (SNPS 0.00%) popped on Thursday. The tech stock rose as much as 11.2%. As of 10:45 a.m. ET today, the stock was up 9.9%.
The stock's sharp increase was due primarily to Synopsys' fiscal second-quarter earnings report, which featured better-than-expected revenue and adjusted earnings per share as well as a strong outlook.
So what
Fiscal second-quarter revenue of $1.279 billion was up from $1.024 billion in the year-ago period, beating analysts' average forecast for revenue of $1.260 billion. Adjusted earnings per share of $2.50 improved from $1.70 in the year-ago period. The consensus forecast for this key profitability metric was $2.37.
CEO Aart de Geus explained in the company's earnings release that the quarterly results were helped by strength across all product groups and geographies.
Image source: Getty Images.
Now what
The company's updated outlook was particularly impressive. "Based on strong first-half execution and confidence in our business, we are raising our full-year targets substantially," said de Geus.
Management is now aiming for full-year revenue of $5 billion to $5.05 billion. Analysts on average were modeling for fiscal 2022 revenue of about $4.81 billion. The company's view for full-year adjusted earnings per share of $8.63 to $8.70 is significantly above analysts' consensus forecast for $7.90.
De Geus said the company's technological innovations, robust demand, and operational execution are key factors in its momentum.
