Cadence Design Systems, a maker of electronic systems design software, late Monday handily beat Wall Street's targets for the first quarter amid healthy semiconductor design activity. It also guided higher for the current quarter and full year. CDNS stock rose in extended trading.
The San Jose, Calif.-based company earned an adjusted $1.17 a share on sales of $902 million in the March quarter. Analysts had expected Cadence earnings of $1.02 a share on sales of $857 million, according to FactSet. On a year-over-year basis, Cadence earnings rose 41% while sales climbed 22.5%.
For the current quarter, Cadence predicts adjusted earnings of 97 cents a share on sales of $835 million. That's based on the midpoint of its outlook. Analysts were forecasting earnings of 92 cents a share on sales of $824 million in the second quarter, FactSet said.
For the full year, Cadence now expects to earn an adjusted $3.93 a share on sales of $3.42 billion. Analysts were looking for earnings of $3.76 a share on sales of $3.36 billion.
CDNS Stock Jumps
In after-hours trading on the stock market today, CDNS stock jumped 4.9%, near 158.50. During the regular session Monday, CDNS stock rose 2.1% to close at 151.10.
"Q1 was a strong start of the year for Cadence, as we delivered outstanding results driven by broad-based strength across our diverse product portfolio," Chief Executive Anirudh Devgan said in a news release.
He added, "Our Intelligent System Design strategy aligns well with the generational secular trends that are fueling robust design activity, and our innovative solutions are accelerating growth in both our core and our new systems businesses across a rapidly expanding customer base."
Cadence offers a suite of software for designing and verifying integrated circuits and other electronic systems.
CDNS stock is in the IBD Long-Term Leaders Portfolio. Industry peer Synopsys also is in the Long-Term Leaders list.
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