Synopsys and National Instruments were running in place on mediocre earnings news, though upgrades for Synopsis, and a stock-split for National Instruments were announced.
Synopsys Inc. (Nasdaq: SNPS) rose only 1/2 to 56 1/2 Friday on analysts' upgrades, tempered by earnings misses announced Thursday.
Synopsys, a maker of software used to design computer chips, reported third-quarter profits of $47.6 million, or 56 cents a share, missing First Call's estimated 67 cents a share. Earnings were an increase over the $33.6 million, or 48 cents a share a year ago. Revenue also rose 25 percent to $207.4 million from revenue of $165.7 million, after adjusting for its merger with Everest Design Automation Inc.
Synopsis also delivered in the second quarter.
Credit Suisse First Boston on Friday said it raised its target price to $75 a share and set a forecast of $3.12 for the fiscal year 2000. According to First Call Corp., the consensus estimates are $2.50 and $3.03 for 1999 and 2000.
Merrill Lynch also upgraded shares of Synopsis on Friday Inc. to "near-term buy" from "neutral." National Instruments (Nasdaq: NATI) fell 1/2 to 46 3/4 after it announced record revenues and earnings for the second quarter, and a 3-for-2 stock split after Thursday's bell.
Revenue for the second quarter was $79.8 million, up 18 percent from $67.8 million in the second quarter of 1998. Geographically revenue growth for the quarter compared to second quarter of 1998 was as follows: Americas 11 percent revenue growth; Europe 24 percent revenue growth; and Asia/Pacific 46 percent revenue growth.
Diluted earnings of 33 cents a share were in line First Call's projected 33 cents a share. They compare to earnings of 28 cents a share in the same period of 1998. Net income for the quarter increased by 22 percent to $11.3 million compared to net income of $9.2 million in the second quarter of 1998.
U.S. Bancorp Piper Jaffray analyst Ashok Kumar reiterated a buy rating on the stock Friday, and set a 12-month price target of $55. " Second quarter sales of $80 million were $2 million better than forecast, largely due to strength in the domestic Automotive and Telecommunications markets," he stated in a report.