Cadence Design Systems stock surges ~6% after Q4 results beat estimates
Imilian

Shares of Cadence Design Systems (NASDAQ:CDNS) on Tuesday gained as much as 7.1% to $198.87, after the computational software company reported Q4 results that beat estimates.
If the gains hold, CDNS stock is on track for its best day since Nov. 10, 2022.
CDNS after hours on Monday posted Q4 adj. EPS of $0.96 which beat estimates by four cents. Revenue rose 16.4% Y/Y to $899.88M, which beat expectations by $15.65M. 
CDNS CFO John Wall on the earnings conference call attributed the strong quarterly earnings to "robust customer design activity" and demand for its technology portfolio.
CDNS CEO Anirudh Devgan expressed confidence in what he called "long-term secular mega-trends" such as 5G, hyperscale computing and AI/ML remaining unchanged.
Devgan added that demand in the quarter was particularly strong in HPC, 5G and automotive segments.
CDNS also issued guidance ranges that were in-line with consensus estimates.
CDNS sees Q1 2023 revenue of $1B to $1.02B, compared to a consensus revenue estimate of $1.01B. Adj. EPS is expected to be $1.23 to $1.27, versus a consensus EPS estimate of $1.26.
FY 2023 revenue is expected to be $4B to $4.06B, compared to a consensus revenue estimate of $4.02B. Adj. EPS id anticipated to be $4.90 to $5.00, versus a consensus EPS estimate of $4.94.