Chip-design software maker Synopsys ( SNPS ) saw its stock hit an all-time high on Thursday after posting better-than-expected results for its fiscal fourth quarter and guiding much higher than analysts predict for the current quarter.
Synopsys shares were up 6%, near 91.95, in morning trading on the stock market today . Intraday the stock hit a record high of 94.80.
Late Wednesday, Synopsys reported adjusted earnings per share of 69 cents, down 10% year over year, on sales of $696.6 million, up 10%, in its fiscal fourth quarter ended Oct. 31. Analysts expected 57 cents and $653 million, according to Zacks Investment Research.
For its fiscal first quarter, Synopsys expects to earn an adjusted $1 a share, up 6% year over year, on sales of $752.5 million, up 15%, based on the midpoint of its guidance. Wall Street was modeling 85 cents and $669 million, Zacks said.
IBD’S TAKE: Synopsys stock has an IBD Composite Rating of 87 out of 99. It ranks No. 2 out of nine stocks in IBD’s Computer Software-Design industry group. To see which company leads the group, visit the IBD Stock Checkup .
At least three Wall Street firms raised their price targets on Synopsys stock on Thursday: KeyBanc Capital Markets, Needham and RBC Capital Markets. All have buy ratings on the stock.
Of those, RBC was the most bullish, reiterating its “top pick” buy rating and raising its price target to 120 from 110.
In a report, RBC analyst Mitch Steves said Synopsys is benefiting from several secular drivers, including the internet of things, automotive chip content and the growing complexity of chips.
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