Cadence Design Systems late Monday beat analyst estimates for the second quarter and raised its full-year outlook for sales and earnings. Cadence stock jumped in extended trading.
The electronic design automation software firm earned an adjusted $1.65 a share on sales of $1.28 billion in the June quarter. Analysts polled by FactSet had expected earnings of $1.56 a share on sales of $1.25 billion. On a year-over-year basis, Cadence earnings rose 29% while sales increased 20%.
For the full year, Cadence now expects to earn an adjusted $6.90 a share on sales of $5.24 billion. That's based on the midpoint of its outlook. Cadence previously guided to adjusted earnings of $6.78 a share on sales of $5.19 billion. In 2024, it earned $5.97 a share on sales of $4.64 billion.
"Cadence delivered an exceptional Q2, with 20% year-over-year revenue growth and stronger than expected bookings," Chief Executive Anirudh Devgan said in a news release. "This highlighted the strategic relevance of our AI-driven portfolio and the depth of our customer relationships."
He added, "The strength and breadth of our products are enabling us to lead through the accelerating waves of the AI Supercycle, from AI infrastructure build-out, to physical AI in autonomous systems, to the emerging frontier of science AI."
In after-hours trading on the stock market today, Cadence stock rose more than 7% to 359.18. During the regular session Monday, Cadence stock rose 0.5% to close at 333.76.
On July 3, Cadence stock hit a buy point of 326.19 out of a 29-week consolidation period, according to IBD MarketSurge charts. But trading action since then has been choppy. Still, Cadence stock notched a regular-session all-time high of 335.16 on Friday.
Cadence stock is on two IBD lists: Long-Term Leaders and Tech Leaders.
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