Cadence Design Systems slips on weaker-than-expected Q3 guidance

Cadence Design Systems (NASDAQ:CDNS) shares fell around 1.5% on Tuesday after the electronic design automation company posted second-quarter results and issued third-quarter guidance that was weaker-than-expected.

Looking ahead, Cadence Design Systems (CDNS) expects third-quarter revenue to be between $990M and $1.01B, with the mid-point slightly below the $1.01B estimate. The company also expects adjusted earnings per share to be between $1.18 and $1.22, below the $1.27 that analysts expect.

San Jose, California-based Cadence (CDNS) also expects adjusted operating margins for the period to be about 40%, below the 41.8% analysts were expecting.

Despite the weak third-quarter forecast, Cadence Design Systems (CDNS) raised its full-year revenue guidance, as it now expects sales to fall within a range of $4.05B to $4.09B, up from a prior range of $4.03B to $4.07B.

It also boosted its full-year adjusted operating margin, as it now expects the metric to be between 41.2% and 42.2%, up from a prior view of 41% to 42%.

Led by CEO Anirudh Devgan, Cadence Design Systems (CDNS) reported adjusted earnings of $1.22 per share for the second-quarter on $976.58M in revenue, compared to estimates of $1.19 and $976.6M in revenue.

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