Cadence Design Systems Stock Drops On Weak Q2 Guidance


Cadence Design Systems (CDNS), a maker of electronic design automation software, late Monday topped analyst estimates for the first quarter but guided well below views for the current quarter. CDNS stock dropped in extended trading.




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The San Jose, Calif.-based company earned an adjusted $1.17 a share on sales of $1.01 billion in the March quarter. Analysts polled by FactSet had expected earnings of $1.13 a share on sales of $1 billion. However, in the year-earlier period, Cadence earned an adjusted $1.29 a share on sales of $1.02 billion.

For the current quarter, Cadence expects to earn an adjusted $1.22 a share on sales of $1.04 billion. That’s based on the midpoint of its outlook. Analysts had been looking for earnings of $1.43 a share on sales of $1.11 billion in the second quarter. In the June-quarter last year, Cadence earned an adjusted $1.22 a share on sales of $977 million.

In after-hours trading on the stock market today, CDNS stock fell 9.5% to 285.02. During the regular session Monday, CDNS stock rose 1.7% to close at 285.02.

CDNS stock is on two IBD stock lists: Long-Term Leaders and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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