Synopsys Q4 EPS In Line With Street

(RTTNews) - Synopsys Inc. (SNPS) Wednesday reported an adjusted earnings for the fourth quarter that matched analysts' estimates.

Synopsys' fourth-quarter profit was $254.3 million or $1.66 per share, compared to loss of $120.1 million or $0.80 per share.

On an adjusted basis, earnings for the quarter were $119.6 million or $0.78 per share, up from $106.5 million, or $0.69 per share last year. On average, 8 analysts polled by Thomson Reuters expected earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the fourth quarter rose to $795.1 million from $696.6 million last year. Analysts had a consensus revenue estimate of $791.5 million.

"Fiscal 2018 was another excellent year for Synopsys. We delivered double-digit revenue and earnings growth, with strength across all product groups and all geographies," said Aart de Geus, chairman and co-CEO of Synopsys. "Notwithstanding expectations of more modest semiconductor industry growth in 2019, design activity across the Silicon to Software spectrum continues unabated."

Looking forward to the first quarter, Synopsys expects adjusted earnings of $0.95 to $1.00 per share and revenues of $775 million to $810 million. Analysts currently estimate earnings of $0.99 per share on revenues of $803.24 million.

For the full year 2019, the company expects adjusted earnings of $4.20 to $4.27 per share and revenues of $3.29 billion to $3.34 billion. Analysts currently estimate earnings of $4.25 per share on revenues of $3.32 billion.

"As we look to our next phase of growth to $4 billion in revenue and beyond, we are raising our long-term financial objectives. Our objective is to drive annual double-digit non-GAAP earnings per share growth, through a mix of continued solid revenue growth and expansion of non-GAAP operating margins to the high 20s over time, with a goal of ~26% in 2021," De Geus said.