Cadence (CDNS) tumbles despite Q1 beat on top and bottom lines

Cadence Design Systems (NASDAQ: CDNS) reported better-than-expected earnings and revenue for the fiscal Q1. Guidance for the full fiscal 2024 met analysts' estimates at the midpoint.

CDNS shares fell over 8% in after-hours trading.

The computational software maker posted earnings per share (EPS) of $1.17, beating the consensus estimates of $1.13. The company's revenue for the quarter also exceeded forecasts, reaching $1.01 billion compared to the projected $1 billion.

The adjusted operating margin for the quarter was 38%, a decline from 42% year-over-year but still above the expected 37.1%.

For the full fiscal 2024, Cadence expects its full-year 2024 EPS to be between $5.88 and $5.98, compared to a consensus estimate of $5.94.

Revenues for the fiscal year range from $4.56 billion to $4.62 billion, with the consensus estimate sitting at $4.591 billion.

"Our strong Q1 results reflect our continued technology leadership supporting our customers and partners, and solid execution from the Cadence team," said John Wall, senior vice president and CFO.

“I am pleased that we delivered record Q1 bookings and achieved record Q1 backlog of approximately $6.0 billion,” he added.

By Vahid Karaahmetovic

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