Synopsys slumps as Q3 results fall short of expectations

Shares of chip design software provider Synopsys SNPS.O fall 21.8% to $472.9 premarket

Reports Q3 revenue of $1.74 bln, missing analysts' consensus estimates of $2.09 bln, according to data compiled by LSEG

Revenue hurt by weakness in its design IP business; adj. margins for segment fell to 20.1% from 36.7% a year ago

J.P. Morgan maintains "overweight" rating, cuts PT to $600 from $685, Piper Sandler also cuts PT to $630 from $660

JPM attributes IP weakness to a combination of program delays with China customers, Intel's INTC.O pivot in its foundry technology and various customers changing focus

Q3 adj. EPS of $3.39 also misses estimates of $3.74

19 of 22 brokerages rate the stock "buy" or higher, three "hold"; their median PT is $600 - data compiled by LSEG

SNPS rival Cadence Designs CDNS.O falls 4.5%

Up to last close, SNPS up about 25% YTD