Cadence Design Systems’ Stock Plummets Following Disappointing Q2 Guidance

Cadence Design Systems’ Stock Plummets Following Disappointing Q2 Guidance

Cadence Design Systems (CDNS), a maker of electronic design automation software, on Monday evening topped analysts’ estimates for the first quarter, but fell well short of forecasts for the current quarter. CDNS stock fell in extended trading.




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

For the current quarter, Cadence expects to earn an adjusted $1.22 per share on revenue of $1.04 billion. This is based on the midpoint of his outlook. Analysts had expected earnings of $1.43 per share on revenue of $1.11 billion in the second quarter. In the June quarter of last year, Cadence earned an adjusted $1.22 per share on revenue of $977 million.

In exchanges outside of business hours on the stock market today, CDNS stock fell 9.5% to 285.02. During Monday’s regular session, CDNS stock rose 1.7% to close at 285.02.

CDNS stock appears on two IBD stock lists: Long-term leaders And Technology leaders.

Follow Patrick Seitz on @IBD_PSeitz for more articles on consumer technology, software and semiconductor stocks.

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