Investing.com -- Synopsys issued softer guidance Wednesday that offset fiscal fourth-quarter results that topped analyst estimates.
Synopsys Inc (NASDAQ:SNPS) tumbled more than 7% in premarket trading Thursday.
For the three months ended Oct. 31, the company reported adjusted Q4 EPS of $3.40 on revenue of $1.64 billion, topping estimates for $3.30 and $1.63B, respectively.
For Q1, adjusted EPS was forecast in a range of $2.77 to $2.82 on revenue of $1.44B to $1.47B, compared with estimates for $3.52 on revenue of $1.64M.
For the full year, adjusted EPS was forecast in a range of $14.88 to $14.96 on revenue of $6.75B to $6.81B, compared with estimates for $14.89 on revenue of $6.91B.
"In what looks like a disappointing print and weak Q1 guide, the company has broken the recent trend to better than expected momentum in core EDA business," Morgan Stanley (NYSE:MS) analysts led by Lee Simpson commented.
"This will challenge investor interest after the share price has strengthened of late - mirroring that across the semis space."
Separately, Wolfe Research analysts maintained an Outperform rating on SNPS shares and raised the target price from $620 to $630.
"SNPS beat across key metrics and provided FY25 guidance below consensus due to impacts to their fiscal year and a more pragmatic outlook on China," the firm said in a note. "After adjusting for these changes, we view the outlook for FY25 positively."
Yasin Ebrahim contributed to this report.