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Cadence Design Systems, Inc. (CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide.
The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an emulation platform; and Protium, a prototyping platform for chip verification.
The company also provides digital IC design products; physical implementation tools, including place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry.
In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system interconnect design products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects.
Further, the company provides intellectual property (IP) products consisting of pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models for use in system-level verification to model correct behavior of full systems interacting with their environments.
Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services.
Cadence Design Systems reported 2nd Quarter June 2020 earnings of $0.68 per share on revenue of $638.4 million. The consensus earnings estimate was $0.52 per share on revenue of $592.5 million. Revenue grew 10.0% on a year-over-year basis.
The company said it expects third quarter non-GAAP earnings of $0.59 to $0.61 per share on revenue of $630.0 million to $650.0 million. The current consensus earnings estimate is $0.63 per share on revenue of $646.6 million for the quarter ending September 30, 2020. The company said it expects 2020 earnings of $2.50 to $2.56 per share on revenue of $2.585 billion to $2.615 billion. The company's previous guidance was earnings of $2.40 to $2.50 per share on revenue of $2.545 billion to $2.585 billion and the current consensus earnings estimate is $2.46 per share on revenue of $2.56 billion for the year ending December 31, 2020.
This stock should move higher out of its "bullish cup and handle" formation.
Entry Point: $111.00
Trading Range: $51.39 - $112.32
Stop Loss: $105.50
Target Price: $122.00
CDNS closed at $114
