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Cadence Design Systems stock (NASDAQ:CDNS) fell in extended trading on Monday, after the company forecast current quarter revenue and profit that fell short of estimates.
CDNS Shares fell to 11.8% after hours, and it was the last down 6.8% at $285.72.
San Jose, California-based Cadence (CDNS) creates computational software for electronic design and systems analysis. It mainly offers products such as the design and packaging of chips used in all types of hardware, and the company counts major companies such as Nvidia (NVDA), Arm (ARM) and Intel (INTC) as its customers.
CDNS reported fourth-quarter 2023 adjusted earnings per share of $1.38 on revenue of $1.07 billion. Analysts had expected the company to earn $1.33 per share on revenue of $1.06 billion.
“We ended the year on a strong note, with growth across all of our businesses in 2023,” Cadence (CDNS) finance chief John Wall said in a statement.
Wall noted that CDNS’s year-end backlog of $6 billion and current remaining performance obligations (a key revenue metric) of $3.2 billion were both records for the company.
However, Cadence’s (CDNS) guidance for the first quarter of 2024 has come under scrutiny. The company expects revenue of $990 million to $1.01 billion, versus a consensus estimate of $1.09 billion. Adjusted earnings are expected to be between $1.10 and $1.14 per share, compared to a consensus of $1.39.
Cadence (CDNS) said the first quarter faced tough comparisons to the same quarter last year, in which hardware sales were exceptionally strong as the company expanded manufacturing capacity to improve lead times. of delivery compared to its backlog.
CDNS also issued guidance for fiscal 2024. The company expects adjusted earnings per share of $5.87 to $5.97 on sales of $4.55 to $4.61 billion. Consensus estimates are $5.89 billion and $4.58 billion, respectively.