Cadence Design Systems (NASDAQ: CDNS) slipped in pre-market trading at the time of writing on Tuesday after the computational software company announced fiscal Q2 results with adjusted earnings of $1.22 per diluted share as compared to $1.08 per share in the same period last year and above Street estimates of $1.19 per share.
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The company clocked revenues of $977 million in Q2, up by 13.86% year-over-year and in-line with consensus estimates.
John Wall, Cadence’s SVP and CFO commented, “We achieved another quarter of strong financial results and are raising our revenue, operating margin and EPS guidance for 2023 yet again. Our revenue outlook for the second half represents a year-over-year growth of approximately 15%, allowing us to raise our 2023 revenue guidance to more than 14% growth over 2022.”
In the second half of this year, Cadence expects total revenue in the range of $2.052 billion to $2.092 billion while adjusted earnings are projected to be between $2.54 and $2.60 per share. In FY23, the company anticipates revenues in the range of $4.05 billion to $4.09 billion while adjusted earnings are likely to be between $5.05 to $5.11 per diluted share.
Analysts are bullish about CDNS stock with a Strong Buy consensus rating based on a unanimous seven Buys.
