06:35 AM EST, 12/05/2024 (MT Newswires) -- Synopsys ( SNPS ) shares dropped early Thursday as the software company issued a downbeat full-year revenue outlook despite reporting fiscal fourth-quarter results above Wall Street's expectations.

The company anticipates per-share adjusted earnings to be in a range of $14.88 to $14.96 and revenue between $6.75 billion and $6.81 billion for fiscal 2025. The current consensus on FactSet is for non-GAAP EPS of $14.9 and revenue of $6.85 billion. In the just-ended fiscal year, adjusted EPS rose annually to $13.20 from $10.54 and revenue advanced 15% to $6.13 billion.

"While design activity remains robust, we are taking a balanced view in 2025, given the impact of fiscal periods, macro uncertainty and a pragmatic view of China," Chief Financial Officer Shelagh Glaser said during a late Wednesday earnings call, according to a FactSet transcript. "We expect the first half, second half split of roughly 45%, 55% for revenue, which is more second half weighted versus 2024's 48%, 52% mix."

The stock fell 7.8% in premarket activity.

For the three months through October, the firm reported adjusted EPS of $3.40, up from $3 the year before, topping the Street's view for $3.30. Revenue increased 11% to $1.64 billion, just ahead of analysts' $1.63 billion estimate.

"The fourth quarter was a strong finish to a transformational year for Synopsys ( SNPS )," Chief Executive Sassine Ghazi said in a statement. "We achieved record financial results while doubling down on our strategy with the sale of our software integrity business and the pending acquisition of Ansys."

Revenue in the design automation segment climbed to $1.12 billion from $953.7 million in the prior-year quarter. Design IP revenue inclined to $517.8 million from $513.7 million, the company said.

Synopsys ( SNPS ) expects adjusted EPS of $2.77 to $2.82 and revenue of $1.44 billion to $1.47 billion for the quarter ending Jan. 31. The Street is currently looking for non-GAAP EPS of $3.09, excluding certain items, and revenue of $1.53 billion.