Cadence Design Systems Stock Gains On Q1 Earnings Beat, Solid FY22 Guidance

Cadence Design Systems Inc CDNS reported first-quarter sales growth of 22.5% year-over-year to 901.77 million, beating the consensus of $857.32 million.
Adjusted EPS improved to $1.17 from $0.83 in 1Q21, beating the consensus of $1.02.
The operating income increased by 56.4% Y/Y to $318.93 million, and the margin expanded by 766 bps to 35.4%.
The adjusted operating margin was 44% versus 38% in 1Q21.
CDNS' net cash provided by operating activities for the quarter was $336.61 million, compared to $208.44 million a year ago.
2Q22 Outlook: Cadence expects total revenue of $825 million to $845 million vs. a consensus of $823.74 million.
It forecasted a GAAP operating margin of 29% to 30% and an adjusted operating margin of 39% to 40%.
It expects GAAP net income per diluted share of $0.59 to $0.63 and foresees an adjusted EPS of $0.95 to $0.99, vs. a consensus of $0.92.
FY22 Outlook: Cadence expects total revenue of $3.395 billion to $3.435 billion vs. a consensus of $3.36 billion.
It sees a GAAP operating margin of 28.5% to 30% and an adjusted operating margin of 38.5% to 40%.
It expects GAAP net income per diluted share of $2.51 to $2.59 and an adjusted EPS of $3.89 to $3.97, vs. a consensus of $3.80.
Price Action: CDNS shares are trading higher by 5.23% at $159 during the post-market session on Monday.

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