Shares of Synopsys (SNPS) - Get Synopsys, Inc. Report advanced Thursday after the chip design software firm reported better-than-expected adjusted earnings for the fiscal third quarter and reported revenue in line with Wall Street estimates.
The company also raised its fiscal 2021 guidance.
Shares of the Mountain View, Calif., company rose 8.83% to $316.22 on Thursday.
For the quarter ended July 31, Synopsys reported net income of $198.6 million, or $1.27 a share, 21.4% lower than $252.9 million, or $1.62 a share, in the year-earlier quarter.
Revenue rose to $1.05 billion from $964.1 million in the same period a year ago.
Adjusted earnings rose to $1.81 a share from $1.74.
A survey of analysts by FactSet produced consensus estimates of GAAP earnings of $1.32 a share, or an adjusted $1.78, on revenue of $1.05 billion.
"Synopsys delivered excellent results in the fiscal third quarter, including record revenue and non-GAAP earnings, and we are substantially raising our fiscal 2021 targets," said chairman and co-CEO Aart de Geus, in a statement.
"On a trailing-12-month basis, we surpassed the major milestone we set a few years ago: $4 billion in revenue and 30% non-GAAP operating margin," de Geus added.
"Vibrant markets, unparalleled technology innovations, and strong execution position us to continue to increase shareholder value going forward. As we look to next year and beyond, we are aiming at crossing $5 billion in revenue by 2023, with double-digit annual revenue growth and continuing margin expansion," de Geus said.
Synopsys said it expects fourth-quarter earnings per share between $1.09 and $1.25 on revenue between $1.13 billion and $1.16 billion.