Semiconductor Supplier Synopsys Announces New CEO, Stock Rises Following Q3 Beat

Synopsys, Inc. SNPS shares are trading higher in the after-hours session Wednesday after the company reported better-than-expected third-quarter financial results and issued guidance.

The company announced that Sassine Ghazi will become CEO effective Jan. 1 and current CEO Aart de Geus will transition to the role of executive chair. 

What To Know: The company reported quarterly earnings of $2.88 per share, which beat the analyst consensus estimate of $2.74, a 37.14% increase over earnings of $2.10 per share from the same period last year. The company reported quarterly sales of $1.49 billion, which beat the analyst consensus estimate of $1.48 billion, a 19.25% increase over sales of $1.25 billion in the same period last year.

Synopsys estimates full-year revenue growth in a range between 14% and 15%, with earnings per share growth between 24% and 25%.

"We achieved another record quarter as semi design starts and R&D investments continue, unabated, to capitalize on the AI-driven, 'Smart Everything' era," de Geus said. 

"Our relentless drive for innovation has made us a catalyst for our customers, with excellent forward momentum for Synopsys. Against this backdrop, I am thrilled with Sassine's transition into the CEO role. He's a proven leader, innovator, and trusted partner who will further inspire and grow our company. Sassine has my full support!"

Related Link: Why Snap Stock Is Trading Lower Today

SNPS Price Action: Shares of SNPS were up 2.5% at $438.93 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by James Osborne from Pixabay.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsTop StoriesAfter-Hours CenterMoversTechwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!