Electronic design software manufacturer Frame design systems (CDNS) beat Wall Street’s targets for the fourth quarter late Monday and rose higher for the current quarter and full year. CDNS share has risen in extensive trading.
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The company in San Jose, California, earned an adjusted share of 83 cents a share at $ 760 million in the December quarter. Analysts have forecast cadence earnings of 74 cents per share on sales of $ 732 million. On an annualized basis, Cadence earnings increased by 54% while sales increased by 27%.
The report was the fourth consecutive quarter of the company with rapid growth in sales and earnings.
For the current quarter, Cadence expects to earn an adjusted 74 cents per share, up 23%, on sales of $ 720 million, an increase of 17%. It is based on the center of the lead. Analysts forecast a profit of 71 cents per share on sales of $ 703 million in the first quarter.
CDNS shares rise after hours
For 2021, Cadence has adjusted earnings of $ 3 per share on sales of $ 2.98 billion, based on the center of its outlook. Wall Street predicted adjusted earnings of $ 2.88 per share on sales of $ 2.83 billion. In 2020, Cadence will earn an adjusted $ 2.80 per share on sales of $ 2.68 billion.
In the after-hours trading on the stock market today, CDNS shares climbed 4.4%, close to 139. During the ordinary session, on a rough day for technology stocks, CDNS shares fell 4.7% to 133%. 16.
“Generation industry executives continue to engage in robust design activities,” CEO Lip-Bu Tan said in a news release. “I am particularly excited about the momentum in our systems design and analytics segment as we further advance our Intelligent System Design strategy with the pending acquisition of Numeca.”
On January 20, Cadence announces a deal to acquire Numeca, a provider of computer fluid dynamics software, optimization and heat transfer technologies. It did not disclose the financial terms of the acquisition.
Cadets on IBD 50 stock list
On December 18, CDNS shares, according to an IBD MarketSmith chart, broke out of a flat base at a buy point of 127.60. A pattern of three weeks in January offered another buying point. CDNS shares hit a record high of 149.08 on February 16th.
Since its breakout, CDNS stock has retreated twice to its 50-day moving average line, a key support level. It ended the regular session on Monday just below the 50-day line, but in the after-hours trading it rose.
CDNS shares are number 34 on the IBD 50 list of the best performing growth stocks.
Follow Patrick Seitz on Twitter @IBD_PSeitz for more stories on consumer technology, software and semiconductor supplies.
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