Cadence Design Systems Stock Is Sliding: What's Happening?

Cadence Design Systems Inc CDNS shares are trading lower Tuesday on the heels of the company's second-quarter financial results.

• Q2 Revenue: $976.58 million beat estimates of $974.86 million
• Q2 EPS: $1.22 beat estimates of $1.18

Cadence said it's seeing "strong ongoing customer demand" for its innovative technologies and highlighted its focus on AI.

"With its unparalleled promise, Generative AI is beginning to make a significant impact globally," said Anirudh Devgan, president and CEO of Cadence. 

"Our dedicated focus on AI over the past several years, combined with our computational software expertise and invaluable data that lies at the core of AI, uniquely positions us to deliver to the tremendous potential of this transformative technology."

Cadence sees revenue for the second half of the year between $2.052 billion and $2.092 billion. Earnings for the second half of the year are expected to be between $2.54 and $2.60 per share. 

The company anticipates full-year revenue of $4.05 billion to $4.09 billion versus estimates of $4.05 billion. Full-year earnings are expected to be in the range of $5.05 and $5.11 per share versus estimates of $5.03 per share. 

Following the company's quarterly results, Keybanc maintained an Overweight rating and raised the price target from $265 to $270. Rosenblatt reiterated Cadence with a Buy rating and maintained a $250 price target.

See Also: Steel Company Nucor Posts Mixed Q2 Results, Projects Lower Q3 Earnings Q/Q

CDNS Price Action: Cadence shares were down 2.16% at $236.05 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.