NEW YORK (TheStreet) -- Synopsys (SNPS) shares are down 1.5% to $48.56 in after-hours trading on Wednesday after the technology solutions provider reported its second quarter earnings results after the closing bell today.
The stock is falling on weak earnings guidance as the company forecast third quarter EPS guidance between 58 cents and 60 cents per share, the top line of which is 6 cents short of analysts 66 cents per share expectations for the period.
The company reported second quarter net income of $107.6 million, or 68 cents per diluted share on revenue that increased 7.6% to $557.2 million. Analysts' on average were expecting the company to report earnings of 63 cents on revenue of $546.7 million.
TheStreet Ratings team rates SYNOPSYS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate SYNOPSYS INC (SNPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: SNPS Ratings Report