Cadence Design Systems, a maker of electronic design automation software, late Monday beat Wall Street's targets for the second quarter, but guided below views for the current quarter. CDNS stock fell in extended trading.
The San Jose, Calif.-based company earned an adjusted $1.28 a share on sales of $1.06 billion in the June quarter. Analysts polled by FactSet had expected earnings of $1.23 a share on sales of $1.04 billion. On a year-over-year basis, Cadence earnings rose 5% while sales increased 8%.
For the current quarter, Cadence expects to earn an adjusted $1.44 a share on sales of $1.18 billion. That's based on the midpoint of its guidance. However, analysts had been modeling earnings of $1.61 a share on sales of $1.2 billion in the third quarter, FactSet said. In the year-earlier period, Cadence earned an adjusted $1.26 a share on sales of $1.02 billion.
Meanwhile, the company's guidance for the full year was mixed, with earnings below estimates and sales above.
For the full year, Cadence now expects to earn an adjusted $5.87 a share on sales of $4.63 billion, based on the midpoint of its outlook. Analysts were looking for earnings of $5.93 a share on sales of $4.59 billion.
CDNS Stock Retreats After Report
In after-hours trading on the stock market today, CDNS stock dropped more than 1% to 283.60. During the regular session, CDNS stock rose 2.6% to close at 287.08.
"Cadence delivered strong results for the second quarter of 2024, with robust demand for our cutting-edge technologies from AI, hyperscale, and automotive customers," Chief Executive Anirudh Devgan said in a news release.
CDNS stock is on two IBD lists: Long-Term Leaders and Tech Leaders.
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