Cadence Design Systems, Inc. (CDNS) exceeded analysts’ expectations for both earnings and revenue in the third quarter of 2024, fueled by strong performance across its product portfolio. While the company’s outlook for the year remains positive, shares dipped slightly on Monday, likely due to investor concerns about the broader market. However, several analysts remain bullish on Cadence, with some even raising their price targets following the earnings announcement.
Cadence Design Systems (CDNS) is set to release its Q3 2024 earnings report on October 28th. Investors will be closely watching for earnings per share (EPS) results and guidance for the next quarter. This article analyzes past earnings performance, analyst sentiment, and key financial metrics to provide insights for investors ahead of the announcement.
Cadence Design Systems’ shares plunged in extended trading after the company issued a weak outlook for its fiscal second quarter. Sales are projected between $1.03B and $1.05B, falling short of analysts’ estimates of $1.11B. Adjusted earnings are expected in the range of $1.20 to $1.24 per share, significantly below analysts’ expectations of $1.43 per share. Despite this, Cadence raised its full-year outlook with sales anticipated between $4.56B and $4.62B, an increase from its previous forecast. Adjusted earnings are also expected to be higher, ranging between $5.88 and $5.98 per share. Notably, Cadence’s revenue slipped 1% in the first quarter, but its adjusted earnings per share came in above analysts’ estimates.
