Cadence Design Systems Reports Q1, Guides Below Q2 Estimates

Cadence Design Systems, Inc. CDNS reported its first-quarter financial results after the bell Monday. Here's a look at the details. 

The Details: The company reported quarterly earnings of $1.17 per share which beat the analyst consensus estimate of $1.13 by 3.54%.

Quarterly sales clocked in at $1.009 billion which beat the analyst consensus estimate of $1.002 billion by 0.67%.

Cadence Design reported Non-GAAP operating margin of 38%, compared to 42% from the same quarter in 2023.

“Q1 was a strong start to the year for Cadence as we delivered solid Q1 results. I’m pleased with our record Q1 backlog that reflects our broad-based strength and product leadership,” said Anirudh Devgan, CEO of Cadence Design Systems.

“We’re thrilled with the momentum of our Cadence.AI portfolio which is providing customers with the most comprehensive and impactful chip-to-systems design capabilities and are excited about the launch of our innovative third-generation Dynamic Duo hardware platforms that further expands our leadership,” Devgan added.

Outlook:  The company sees second-quarter adjusted earnings of between $1.20 and $1.24 per share, below the $1.43 analyst estimate and second-quarter revenue of between $1.03 billion and $1.05B, versus the $1.11 billion estimate.

Cadence sees full-year 2024 adjusted earnings of between $5.88 and $5.98 per share, versus the $5.94 estimate and full-year revenue of between $4.56 billion and $4.62 billion, versus the $4.59 billion estimate.

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CDNS Price Action: According to Benzinga Pro, Cadence Design Systems shares are down 8.77% after-hours at $258.02 at the time of publication Monday.

Photo: Pete Linforth from Pixabay