Cadence Stock Surges After Q4 Beat, Strong Outlook
Cadence Design Systems, Inc. shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter adjusted earnings per share guidance above estimates on Tuesday after the market closed.
- Cadence stock is surging to new heights today. Why is CDNS stock up today?
Fourth-Quarter Results And Guidance
Cadence reported adjusted earnings per share of $1.99, beating the consensus estimate of $1.91. In addition, the company reported revenue of $1.44 billion, beating the consensus estimate of $1.42 billion.
Revenue increased 14% year-over-year from $1.356 billion in the same quarter last year.
Year-end backlog reached a record $7.8 billion, with $3.8 billion expected to be recognized over the next 12 months from remaining performance obligations. The company ended the quarter with approximately $3 billion in cash and cash equivalents.
“Strong customer demand for our expanding AI-driven product portfolio and the essential nature of Cadence’s engineering software position us well to capture the massive opportunities in the AI era,” said Anirudh Devgan, president and CEO.
Looking ahead, the company expects fiscal-year adjusted earnings per share from $8.05 to $8.15, versus the consensus estimate of $8.05. It anticipates revenue from $5.90 billion to $6.00 billion, versus the consensus estimate of $5.94 billion.
For the first-quarter, the company sees adjusted earnings per share from $1.89 to $1.95, versus the consensus estimate of $1.80.
Consensus Ratings And Analyst Action
The company has a consensus rating of Buy and a consensus price target of $366.50. Recent analyst action include:
- Needham analyst Charles Shi reiterated a Buy rating on Cadence and maintained a $390 price target.
- Morgan Stanley analyst Lee Simpson maintained an Overweight rating on Cadence and lowered the price target from $385 to $370.
- Piper Sandler analyst Clarke Jeffries maintained a Neutral rating Cadence and lowered the price target from $355 to $319.
- Rosenblatt analyst Blair Abernethy upgraded Cadence from a Neutral rating to a Buy rating and raised he price target from $335 to $360.
Cadence Shares Climb Higher
CDNS Price Action: At the time of writing, Cadence stock is trading 5.43% higher at $298.83, according to data from Benzinga Pro.
Image via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Euro posts modest lossess on rising Fed hike odds, Middle East tensions
Overnight US Stocks | The three major indexes were mixed; US Treasury bonds and oil prices disrupted the market; Oracle (ORCL.US) data center project raises concerns
On Thursday, the three major U.S. stock indexes closed mixed.
Three Federal Reserve officials turn hawkish on the same day, market expects probability of rate hike in October to rise to 69%
On Thursday, the President of the Philadelphia Fed stated that further tightening of policy may be necessary; the President of the New York Fed said that another rate hike within the year is reasonable; the President of the Cleveland Fed indicated that the risk of inflation expectations becoming unanchored has increased significantly. Previously, on Wednesday, Federal Reserve Governor Michael Barr mentioned that further policy adjustments may be necessary; on Tuesday, the President of the Richmond Fed stated that the risk of entrenched inflation is rising. Driven by hawkish comments from officials and strong economic data, market expectations for a rate hike in October have risen from 53% last weekend to 69%.
Crypto prices
More
