Cadence Design Systems Reports Q1, Guides Below Q2 Estimates
Portfolio Pulse from Erica Kollmann
Cadence Design Systems, Inc. (NASDAQ:CDNS) reported Q1 earnings of $1.17 per share, surpassing estimates of $1.13, and sales of $1.009 billion, slightly above the $1.002 billion estimate. However, the company's Q2 earnings and revenue guidance fell below analyst expectations, with earnings projected between $1.20 and $1.24 per share against a $1.43 estimate, and revenue forecasted between $1.03 billion and $1.05 billion, compared to the $1.11 billion estimate. Shares dropped 8.77% after-hours.
April 22, 2024 | 8:36 pm
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Cadence Design Systems reported higher-than-expected Q1 earnings and sales but provided a weaker Q2 outlook, leading to an 8.77% drop in after-hours trading.
The negative short-term impact on CDNS stock is primarily due to its Q2 earnings and revenue guidance falling significantly below analyst expectations, which often leads to a loss of investor confidence and a decrease in stock price, as evidenced by the 8.77% drop in after-hours trading.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100