Cadence Design Systems stock is volatile right now: Here’s why
Cadence Design Systems (NASDAQ: CDNS) shares are volatile amid increased volatility following the company’s second-quarter 2024 financial results.
What Happened: Cadence reported better-than-expected adjusted EPS and sales results, but issued some soft guidance.
The company reported second-quarter adjusted EPS of $1.28, beating the consensus estimate of $1.22 and second-quarter sales of $1.061 billion, beating the $1.043 billion estimate.
The company issued third-quarter adjusted EPS guidance of $1.39 to $1.49, which is below the $1.60 estimate. The company also issued third-quarter revenue guidance of $1.165 billion to $1.195 billion, compared to the $1.19 billion estimate.
In terms of full year guidance, the company sees fiscal year 2024 adjusted EPS of $5.77 to $5.97, compared to the $5.93 estimate. For revenue, the company expects $4.6 billion to $4.66 billion, versus the $4.6 billion estimate.
Why The Stock Is Volatile: Cadence’s guidance is the likely cause for volatility. The company’s third-quarter adjusted EPS guidance is below what Wall Street is expecting and the company’s revenue guidance midpoint is below the analyst estimate.
Price Action: The stock was trading 1.13% lower to $283.83 at the time of writing. Cadence stock has a 52-week high of $328.99 and a 52-week low of $217.77.
