Hot Stock in Focus: Cadence Design Systems (NASDAQ: CDNS)

On Thursday, Shares of Cadence Design Systems (NASDAQ: CDNS) declined -3.93% to $41.53. The stock grabbed the investor’s attention and traded 1,601,726 shares as compared to its average daily volume of 2.17M shares. The stock’s institutional ownership stands at 91.10%.

Cadence Design Systems, Inc. (CDNS) recently stated its results under new revenue rules, ASC Topic 606. For the third quarter of 2018, Cadence stated revenue of $532.0M, GAAP net income of $99.0M, or $0.35 per share on a diluted basis, and non-GAAP net income (as defined below) of $139.0M, or $0.49 per share on a diluted basis.

Under ASC Topic 605, for the third quarter of 2018, Cadence stated revenue of $526.0M, contrast to revenue of $485.0M stated for the same period in 2017. On a GAAP basis, Cadence recognized net income of $95.0M, or $0.34 per share on a diluted basis, in the third quarter of 2018, contrast to net income of $81.0M, or $0.29 per share on a diluted basis for the same period in 2017. Net income for the third quarter of 2018 was $137.0M, or $0.49 per share on a diluted basis, as contrast to non-GAAP net income of $98.0M, or $0.35 per share on a diluted basis, for the same period in 2017.

Business Outlook:

For the fourth quarter of 2018, the company anticipates total revenue in the range of $545.0M to $555.0M. Fourth quarter GAAP net income per diluted share is expected to be in the range of $0.27 to $0.29. Net income per diluted share using the non-GAAP measure defined below is expected to be in the range of $0.46 to $0.48.

For 2018, the company anticipates total revenue in the range of $2.113B to $2.123B. On a GAAP basis, net income per diluted share for 2018 is expected to be in the range of $1.15 to $1.17. Using the non-GAAP measure defined below, net income per diluted share for 2018 is expected to be in the range of $1.80 to $1.82.

CDNS has a market value of $11.83B while its EPS was booked as $0.48 in the last 12 months. The stock has 284.80M shares outstanding. In the profitability analysis, the company has gross profit margin of 88.30% while net profit margin was 11.30%. Beta value of the company was 1.06; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.10.

Bobbie Collins

Bobbie Collins gives us an insight into the most recent news hitting the Technology Sector in Wall Street. He has been an independent financial adviser for over 10 years in the city and in recent years turned his experience in finance and passion for journalism into a full time role. He performs analysis of Companies and publicizes valuable information for shareholder community. Collins is an accomplished journalist who has a passion for travel. His desire to see the world has taken him to countries around the world and given him the opportunity to report for some of the top news organizations.

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