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!"

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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.