Manufacturer of electronic design software Cadence Design Systems (CDNS) on Monday night exceeded Wall Street goals for the fourth quarter and rose for the current quarter and the whole year. CDNS shares rose during the trading period.
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The San Jose, Calif.-Based company earned 83 adjusted cents per share on sales of $ 760 million in the December quarter. Analysts forecast Cadence’s earnings of 74 cents per share on sales of $ 732 million. On a year-over-year basis, Cadence’s earnings increased by 54%, while sales increased by 27%.
The report marked the fourth consecutive quarter of accelerated sales and profit growth for the company.
For the current quarter, Cadence expects to earn 74 adjusted cents per share, an increase of 23% over sales of $ 720 million, an increase of 17%. This is based on the midpoint of your orientation. Analysts had expected gains of 71 cents a share on sales of $ 703 million in the first quarter.
CDNS stock rises after-hours trading
For 2021, Cadence expects adjusted earnings of $ 3 per share on sales of $ 2.98 billion, based on the midpoint of its forecast. Wall Street predicted adjusted earnings of $ 2.88 per share and sales of $ 2.83 billion. In 2020, Cadence earned an adjusted $ 2.80 per share on sales of $ 2.68 billion.
In the after-hours stock market today, CDNS shares rose 4.4%, close to 139. During the regular session, CDNS shares fell 4.7%, to 133.16 on a difficult day for stocks technology.
“The drivers of the generation industry continue to drive robust design activity,” Chief Executive Lip-Bu Tan said in a press release. “I am especially excited about the momentum in our system design and analysis segment as we move forward with our Intelligent System Design strategy with the pending acquisition of Numeca.”
On January 20, Cadence announced an agreement to buy Numeca, a provider of computational fluid dynamics software, optimization and heat transfer technologies. It did not disclose the financial terms of the acquisition.
Cadence On IBD 50 Stock List
On December 18, CDNS shares moved from a flat base to a 127.60 point of purchase, according to the IBD MarketSmith charts. A tight three-week pattern in January offered another point of purchase. CDNS shares reached a record high of 149.08 on February 16.
Since its breakup, CDNS shares have moved back twice to its 50-day moving average line, a key support level. He ended Monday’s regular session just below his 50-day line, but rose above it in the negotiations after the exchange closed.
CDNS shares are 34th in the IBD 50 list of the best performing growth stocks.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software and semiconductor stocks.
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