Why Cadence Design Systems Shares Are Sliding After Hours

Cadence Design Systems Inc CDNS shares are trading lower in Monday's after-hours session after the company reported quarterly results and issued weak guidance. 

• Q1 Revenue: $1.02 billion beat estimates of $1.01 billion
• Q2 EPS: $1.29 beat estimates of $1.25

Cadence said its better-than-expected results were driven by consistent execution and continued momentum in the core EDA and System Design and Analysis businesses.

"With the recent introductions of Virtuoso Studio and Allegro X AI, we now have an unmatched ‘chip to package to board to systems' Generative AI portfolio underpinned by our differentiated JedAI platform and delivering unprecedented quality of results and productivity benefits," said Anirudh Devgan, president and CEO of Cadence Design Systems.

Outlook: Cadence Design Systems sees second-quarter revenue in a range of $960 million to $980 million versus estimates of $1.01 billion. The company expected earnings to be between $1.15 and $1.19 per share versus estimates of $1.25 per share. 

Cadence sees full-year revenue in a range of $4.03 billion to $4.07 billion versus estimates of $4.04 billion. The company anticipates full-year earnings in a range of $4.96 to $5.04 per share versus estimates of $4.98 per share.

See Also: Tenable Shares Are Tumbling After Hours: What's Driving The Action?

CDNS Price Action: Cadence Design Systems shares were down 3.76% after hours at $204.97 at the time of writing, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.