The stock of Cadence Design Systems (CDNS) is up 5% after the company announced third-quarter financial results that beat Wall Street forecasts.
Cadence Design, which makes computational software that’s used in the semiconductor space, announced earnings per share (EPS) of $1.64 U.S., which topped estimates that called for earnings of $1.44 U.S.
Revenue in the July through September quarter totaled $1.22 billion U.S., which topped analyst forecasts of $1.18 billion U.S.
The company said that its System Design & Analysis business achieved 47% year-over-year revenue growth in Q3, while its IP business saw a 59% annualized increase.
Revenue in the Functional Verification business segment grew 22% year-over-year during Q3.
In terms of guidance, Cadence Design Systems said it expects full-year earnings per share of $5.87 U.S. to $5.93 U.S. That was ahead of consensus views that called for EPS of $5.89 U.S.
Management added that they anticipate full-year revenue of $4.61 billion U.S. to 4.65 billion U.S., which also is ahead of Wall Street expectations of $4.62 billion U.S.
Before today (Oct. 29), the stock of Cadence Design Systems had declined 4% this year to trade at $252.77 U.S. per share.
