All articles tagged with #cadence design systems
Cadence Design Systems beat Q3 earnings expectations with $1.93 per share on $1.34 billion in sales, but its stock fell nearly 2% after issuing a disappointing Q4 outlook, despite a record backlog and positive full-year guidance.
Lip-Bu Tan, CEO of Intel, has a long history of investing in Chinese companies, including SMIC and Cadence, which has drawn scrutiny amid US-China tensions and calls for his resignation. Despite divesting some holdings, his past Chinese business dealings continue to attract political criticism, highlighting the complex relationship between US tech leaders and China.
Cadence Design Systems agreed to plead guilty and pay over $140 million in penalties for illegally exporting semiconductor design tools to a restricted Chinese military university, NUDT, violating U.S. export laws and involving conspiracy and concealment efforts. The case highlights ongoing concerns over technology transfer to military entities in China and the enforcement of export controls.
Cadence Design Systems beat fourth-quarter earnings expectations but missed sales and earnings guidance for the current quarter, causing its stock to fall more than 6% in after-hours trading. The company's full-year guidance, however, exceeded Wall Street's estimates. CEO Anirudh Devgan expressed optimism about future opportunities in AI and 3D IC. Despite the disappointing outlook, CDNS stock remains on three IBD stock lists and ranks third in IBD's Computer Software-Design industry group.
Zacks Investment Ideas feature highlights Arista Networks, Cadence Design Systems, Shopify, and Nvidia as top tech stocks to consider buying outside the Magnificent 7. The S&P 500 hits 5,000 for the first time, signaling a largely bullish earnings season, with strong results from many tech stocks. Arista Networks, Cadence Design Systems, and Shopify are projected to show strong financial results, with positive outlooks and high rankings from Zacks. Investors are advised to take advantage of any market downturns to invest in these stocks.
Cadence Design Systems is set to report its Q4 earnings, with analysts expecting a 17.9% year-on-year revenue growth to $1.06 billion and adjusted earnings of $1.33 per share. The company has generally exceeded revenue expectations, and its peers in the vertical software segment have shown positive results. With a current stock price of $314.7 and an analyst price target of $289.4, Cadence is experiencing positive investor sentiment and is positioned for potential growth in the technology and cybersecurity sectors.
The S&P 500 has reached 5,000 for the first time, with many tech stocks posting strong results. Outside the Magnificent 7, investors may consider Arista Networks, Cadence Design Systems, and Shopify. Arista Networks is expected to grow sales by 34% in FY23, Cadence Design Systems by 15% in FY23, and Shopify's revenue is projected to jump 25% higher in FY23. These companies have strong earnings projections and are ranked favorably by Zacks Investment Research.
The Dow Jones Industrial Average rallied as investors shrugged off geopolitical concerns and defense stocks like General Dynamics, L3Harris Technologies, and Northrop Grumman made significant gains. Chevron and Occidental Petroleum, both Warren Buffett stocks, tested new entry points. Meanwhile, Cadence Design Systems tested a buy point. Treasury Secretary Janet Yellen's oil price pledge in response to the Middle East hostilities did not dampen the rise of energy stocks, with SLB, Exxon Mobil, ConocoPhillips, Baker Hughes, and BP all gaining. Walt Disney was the top performer on the Dow, while Coca-Cola and Procter & Gamble lagged.
NXP Semiconductors' stock rose 1% after reporting better-than-expected earnings and revenue for the second quarter, surpassing analysts' estimates. Meanwhile, Cadence Design Systems' shares fell 4% as the company's revenue missed expectations. Whirlpool's stock dipped 2% despite beating earnings estimates, as its revenue fell short. F5 Networks saw a 7% increase in its shares after posting strong financial results, exceeding both earnings and revenue expectations.
First Republic Bank's shares fell 7.8% after its deposit flight was worse than expected, despite beating analysts' estimates for earnings per share in the first quarter. Whirlpool's shares rose 3% after its earnings and revenue beat analysts' estimates. Cadence Design Systems fell 3.2% in after-hours trading due to weak earnings and revenue guidance for the second quarter, despite beating analysts' estimates for the first quarter.