Cadence Design tops analysts’ estimates for earnings and revenue in Q4.

Cadence Design Systems Inc. (NASDAQ: CDNS) published its earnings report for the fiscal fourth quarter on Monday that came in better than what analysts had anticipated.

Cadence Design Systems’ shares were reported close to 6% up in after-hours trading on Monday. The stock now has a per-share price of £100.63 versus after recovering from a low of £38.83 per share in March 2020.

Cadence Design’s Q4 financial results versus analysts’ estimates

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Cadence said that it earned 59.03 pence per share on an adjusted basis in the fourth quarter, compared to a lower 38.40 pence per share in the comparable quarter of last year. The U.S. firm valued its revenue in Q4 at £540.49 million versus the year-ago figure of £426.41 million.

In comparison, experts had forecast the company to report £520.57 million of sales in the recent quarter. Their estimate for adjusted per-share earnings stood at a lower 52.63 pence per share. In the prior quarter (Q3), Cadence reported £124.78 million of profit.

For the full financial year, Cadence reported £1.91 billion of revenue – an increase from £1.66 billion in 2019. The American multinational posted £420.30 million of recognised net income in 2020, that translates to £1.50 per share. In the previous fiscal year, its net income had come in at a much higher £703.34 million, or £2.51 per share.

Operating margin, as per the computational software company, stood at 24% in the fourth quarter as well as in 2020 as a whole. For the fiscal first quarter, Cadence forecasts its total revenue between £504.93 million to £519.15 million. It expects non-GAAP per-share net income (diluted) of up to 54.05 pence in Q1.