Cadence Design Systems, Inc. (NASDAQ:CDNS) shares are trading lower Wednesday amid sympathy with Synopsys, Inc. (NASDAQ:SNPS) after the company reported third quarter financial results.
What To Know: Synopsys reported adjusted earnings per share of $3.39, missing the consensus estimate of $3.74. In addition, the company reported sales of $1.73 billion, missing the consensus estimate of $1.76 billion, but representing a 14% year-over-year increase.
For the fourth quarter, the company anticipates adjusted earnings per share from $2.76 and $2.80, versus the consensus estimate of $4.51. In addition, Synopsys sees sales between $2.23 billion and $2.26 billion, versus the consensus estimate of $2.09 billion.
For the fiscal year, Synopsys lowered its adjusted earnings per share from between $15.11 to $15.19 to between $12.76 and $12.80, versus the consensus estimate of $15.00. Furthermore, it raised its sales guidance from between $6.74 billion to $6.80 billion to between $7.03 billion to $7.06 billion, versus the consensus estimate of $6.90 billion.
Cadence may be trading lower in sympathy with Synopsys as both operate in the electronic design automation industry, where broader conditions that impact one company could influence the other.
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CDNS Price Action: At the time of writing, Cadence shares are trading 6.41% lower at $338.31, according to data from Benzinga Pro.
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