Cadence Design Systems (CDNS) announced its first-quarter financial results after market close on Monday, showcasing strong performance that outpaced analyst expectations.
The company reportedquarterly earnings of $1.17 per share, surpassing the consensus estimate of $1.13 by 3.54%. Quarterly sales also exceeded expectations, reaching $1.009 billion, a 0.67% increase over the $1.002 billion forecast.
Cadence Design reported a non-GAAP operating margin of 38%, lower than the 42% reported in the same quarter of 2023.
Anirudh Devgan, CEO of Cadence Design Systems, expressed optimism about the company’s performance:
“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.”
Devgan further emphasized the momentum of Cadence’s AI portfolio and the launch of its third-generation Dynamic Duo hardware platforms.
Looking ahead, Cadence Design anticipates adjusted earnings per share in the second quarter between $1.20 and $1.24, below the $1.43 analyst estimate. The company also estimates second-quarter revenue of between $1.03 billion and $1.05 billion, lower than the $1.11 billion forecast.
For the full year 2024, Cadence Design projects adjusted earnings per share between $5.88 and $5.98, slightly below the $5.94 consensus estimate. The company anticipates full-year revenue between $4.56 billion and $4.62 billion, in line with the $4.59 billion estimate.
In after-hours trading, Cadence Design Systems shares experienced an 8.77% decline, settling at $258.02 at the time of publication.
