Cardiff Oncology shares plunge after Q2 earnings miss
Investing.com - Shares in Cadence Design (NASDAQ:CDNS) Systems rose in premarket U.S. trading on Tuesday after the chip designer lifted its full-year guidance and posted second-quarter results that topped Wall Street estimates.
For the three months ended June 30, Cadence Design announced earnings per share of $1.65 on revenue of $1.28 million. Analysts polled by Investing.com anticipated per-share income of $1.56 on revenue of $1.25 billion.
"Strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23," the company said.
Second-quarter sales to China amounted to roughly 9% of total revenue, down from 12% in the same period last year.
Earlier this month, Cadence said it was in the process of restoring access to software and technology for its customers in China. The announcement came after the U.S. removed export restrictions on chip design software to the country.
For the current quarter, Cadence guided for adjusted diluted per-share profit of $1.75 to $1.85, compared with estimates of $1.73.
Cadence added that it expects annual adjusted earnings per share to be between $6.85 to $6.95 and revenue to come in at $5.21 billion to $5.27 billion. A prior estimate had called for per-share income of $6.73 to $6.83 on revenue of $5.15 billion to $5.23 billion.
Cadence previously improved its full-year revenue and profit outlook in April, as a boom in enthusiasm around artificial intelligence fueled demand for its designs from semiconductor firms.
The company specializes in providing the software needed to design the chips and computing systems that underpin rapid AI processors. AI-darling Nvidia (NASDAQ:NVDA) and iPhone manufacturer Apple (NASDAQ:AAPL) are some of Cadence’s clients, although its business has expanded in recent years to include businesses like supersonic jet makers and biotech startups.
Separately on Monday, the Justice Department said Cadence had agreed to plead guilty and pay more than $140 million to the U.S. to help resolve charges related to the sale of its products to a Chinese military university, Reuters reported. Cadence said in a securities filing that it was "pleased" to reach a settlement.
Meanwhile, the group said it was anticipating a benefit of around $140 million from changes to cash tax payments included in a sweeping fiscal policy bill recently signed into law by U.S. President Donald Trump.
(Yasin Ebrahim contributed reporting.)