Cadence Design Systems Q3 Earnings Top Expectations, Shares Rise 51% in Past Year
Cadence's Q3 results beat estimates with earnings of $254.3 million and revenue of over $1 billion; however, a weaker-than-expected Q4 forecast due to slow recovery in the chip industry and rising costs prompt concerns.
- Cadence Design Systems reported Q3 earnings of $254.3 million and $1.02 billion revenue, outperforming Wall Street estimates.
- Despite beating estimates, the company's Q4 forecast is weaker than expected, due to a slow chip industry recovery and increasing costs.
- Cadence's share price has increased by 51% in the past year, reaching $239.59.
- The company's R&D expenses have increased by 13.8% in Q3 because of investments in integrating AI capabilities into its software tools.
- Cadence, which derived 15% of its total revenue from China in 2022, could be negatively impacted by US export controls on high-end chip technology.
Reuters 