Cadence Design Systems Reports Strong Q4 2024 Results, but 2025 Forecast Falls Short of Expectations

Cadence Design Systems Q4 Earnings: Revenue Beat, EPS Beat, 'Very Well Positioned' To Benefit From AI, Shares Slide On Soft Guidance - Cadence Design Sys (NASDAQ:CDNS)

Cadence Design Systems Inc CDNS reported fourth-quarter financial results and issued soft guidance after the bell. Here's a rundown of the report. Q4 Revenue: $1.36 billion, versus estimates of $1.35 billion Q4 Adjusted EPS: $1.88, versus estimates of $1.82 Total revenue was up about 27% year-over-year in the fourth quarter. The company ended the quarter with a record backlog of $6.8 billion and current remaining performance obligations of $3.4 billion. Cadence said it had $2.64 billion in cash and cash equivalents at quarter's end. "Our momentum continues to build as we exited 2024 with record bookings and record backlog. Cadence is very well positioned to benefit from the various phases of AI, including the current AI infrastructure buildout, applying AI to our own products, and expanding into new markets such as life sciences," said Anirudh Devgan, president and CEO of Cadence Design Systems. Check This Out: Bumble Shares Drop After Q4 Report: Here's Why Outlook: Cadence Design Systems expects full-year 2025 revenue to be in the range of $5.14 billion to $5.22 billion versus estimates of $5.25 billion. The company anticipates full-year adjusted earnings of $6.65 to $6.75 per share versus estimates of $6.83 per share, per Benzinga Pro. Management will further discuss the company's quarterly results on a conference call scheduled for 5 p.m. ET. CDNS Price Action: Cadence Design Systems shares were down 4.64% after hours, trading at $286.50 at the time of publication Tuesday, according to Benzinga Pro. Read Next: Warren Buffett Unfazed By Trump's Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer Photo: Shutterstock. CDNSCadence Design Systems Inc$300.431.78%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Cadence reports strong revenue growth but 2025 forecast disappoints investors - SiliconANGLE

Cadence reports strong revenue growth but 2025 forecast disappoints investors Shares in Cadence Design Systems Inc. fell in after-hours trading today after the electronics and system design company's 2025 outlook fell short of expectations despite reporting earnings and revenue beats in its fiscal 2024 fourth quarter. For the quarter that ended on Dec. 31, Cadence reported adjusted earnings per share of $1.88, up from $1.38 per share in the fourth quarter of 2023, on revenue of $1.356 billion, up 26.86% year-over-year. Both figures were beats, coming in ahead of the $1.82 per share and revenue of $1.35 billion expected by analysts. Across its product lines, Cadence saw product and maintenance revenue of $1.239 billion in the quarter, up 26.2% year-over-year, while service revenue came in at $116.7 million, up 34.69%. The company ended the year with $2.644 billion in cash and cash equivalents on hand. For the full fiscal year 2024, Cadence reported adjusted earnings per share of $5.97, up from $5.15 in 2023, on revenue of $4.641 billion, up 13.47% year-over-year. Business highlights include strong momentum across Cadence's artificial intelligence-driven portfolio and core product lines. The company's AI optimization tools, including Cadence Cerebrus, Verisium SimAI and Allegro X AI, saw significant adoption among top-tier customers. Meanwhile, Cadence's large language model-based Design Agents, powered by the JedAI data platform, also demonstrated early success in key engagements. Cadence's system design and analysis segment achieved over 40% growth in 2024, driven by the company's multi-physics analysis platform and AI-driven optimization. The technologies have delivered strong results across multiple industries, with aerospace, defense and automotive seeing notably high adoption. Cadence's IP business also grew 28% year-over-year in the quarter, fueled by demand for its AI HPC protocols, including HBM, DDR, PCIe, and UCIe solutions. Core EDA, spanning digital, custom/analog and verification portfolios, posted a 15% year-over-year increase in the fourth quarter. Additionally, Cadence's hardware business, featuring the Palladium Z3 and Protium X3, delivered record-breaking performance, with the company describing the fourth quarter as its best quarter ever. "Our momentum continues to build as we exited 2024 with record bookings and record backlog," said Anirudh Devgan, president and chief executive officer of Cadence, in the company's earnings release. "Cadence is very well positioned to benefit from the various phases of AI, including the current AI infrastructure buildout, applying AI to our own products and expanding into new markets such as life sciences." For the fiscal year 2025, Cadence expects adjusted earnings per share of $6.65 to $6.75 on revenue of $5.14 billion to $5.22 billion. Both were misses, as analysts were expecting $6.80 per share on revenue of $5.23 billion. As a result of the misses, Cadence shares were down nearly 4% in after-hours trading.