CDNS Stock Recent News

I recommend a hold rating for Cadence Design Systems, Inc. due to its high valuation despite strong long-term growth potential. CDNS reported strong Q4 results but provided soft FY25 guidance, indicating decelerating growth and potential valuation risks. CDNS's premium valuation compared to peers like Synopsys and ANSYS is hard to justify given similar growth rates and exposure to AI trends.

CDNS' robust portfolio amid increasing design activity is promising, but external risks warrant caution. Investors should wait for a better entry point.

CDNS reports better-than-expected fourth-quarter results on solid demand trends. Revenues for 2025 are expected to be in the range of $5.14-$5.22 billion.

I reiterate a “Sell” rating on Cadence Design Systems, Inc. with a one-year price target of $250 per share, citing overvaluation concerns. Despite 26.8% revenue growth and 35.4% operating profit growth, potential export restrictions to China remain a key risk. Strong AI chip demand and AI infrastructure buildout have driven a robust $6.8 billion backlog, supporting near-term business growth.

Shares of Cadence Design Systems Inc CDNS were trading lower on Wednesday, despite the company reporting upbeat fourth-quarter results.

Cadence Design Systems, Inc. (NASDAQ:CDNS ) Q4 2024 Earnings Conference Call February 18, 2025 5:00 PM ET Company Participants Richard Gu - VP of IR Anirudh Devgan - President and CEO John Wall - SVP and CFO Conference Call Participants Jason Celino - KeyBanc Capital Markets Joe Quatrochi - Wells Fargo Ruben Roy - Stifel Vivek Arya - Bank of America Securities Lee Simpson - Morgan Stanley Charles Shi - Needham & Company Gianmarco Conti - Deutsche Bank Jay Vleeschhouwer - Griffin Securities Gary Mobley - Loop Capital Harlan Sur - JPMorgan Siti Panigrahi - Mizuho Joshua Tilton - Wolfe Research Operator Ladies and gentlemen, good afternoon. My name is Abby and I will be your conference operator today.

The headline numbers for Cadence (CDNS) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Cadence Design Systems (CDNS) came out with quarterly earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.82 per share. This compares to earnings of $1.38 per share a year ago.

Cadence Design Systems (CDNS 1.77%), a leader in computational software for electronic system design, reported fourth-quarter 2024 earnings on Tuesday, Feb. 18, that topped analysts' consensus expectations but also included soft guidance for 2025.

CDNS' fourth-quarter performance is likely to have benefited from higher customer demand amid volatile global macroeconomic conditions.