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On the move stock trend: Cadence Design Systems, Inc.’s (NASDAQ: CDNS)

On Tuesday, Cadence Design Systems, Inc.’s (NASDAQ: CDNS) finished the previous buying and selling session with the price of $46.00. The stock revealed the change of +1.41 percent with higher momentum. The company traded volume 1,345,669 shares versus it average capacity of 1,803,589 shares. It has market cap of $13.009B.

Cadence Design Systems, Inc. (CDNS) recently stated its results under new revenue rules, ASC Topic 606. For the second quarter of 2018, Cadence stated revenue of $518M, GAAP net income of $75M, or $0.27 per share on a diluted basis, and non-GAAP net income (as defined below), of $126M, or $0.45 per share on a diluted basis.

Cadence also stated its results under the old revenue rules, ASC Topic 605, for easier comparison with previous results, all of which were stated under ASC Topic 605.

Under ASC Topic 605, for the second quarter of 2018, Cadence stated revenue of $515M, contrast to revenue of $479M stated for the same period in 2017. On a GAAP basis, Cadence recognized net income of $73M, or $0.26 per share on a diluted basis, in the second quarter of 2018, contrast to net income of $69M, or $0.25 per share on a diluted basis for the same period in 2017. Using the non-GAAP measure defined below, net income for the second quarter of 2018 was $124M, or $0.44 per share on a diluted basis, as contrast to non-GAAP net income of $94M, or $0.34 per share on a diluted basis, for the same period in 2017.

Business Outlook

The outlook provided below is on an ASC Topic 606 basis, which Cadence has adopted for its fiscal year 2018 using the modified retrospective transition method. As required by the new standard, the company will report revenue under both methods for the 2018 transition year.

For the third quarter of 2018, the company expects total revenue in the range of $510M to $520M. Third quarter GAAP net income per diluted share is predictable to be in the range of $0.22 to $0.24. Net income per diluted share using the non-GAAP measure defined below is predictable to be in the range of $0.40 to $0.42.

For 2018, the company expects total revenue in the range of $2.070B to $2.090B. On a GAAP basis, net income per diluted share for 2018 is predictable to be in the range of $0.95 to $1.01. Using the non-GAAP measure defined below, net income per diluted share for 2018 is predictable to be in the range of $1.64 to $1.70.

For 2018, the company is forecasting a non-GAAP income tax rate of 16 percent, down from 23 percent used in 2017, primarily resulting from the tax rate reduction.

For comparison purposes, the company expects the outlook at the midpoint for 2018 on the previous ASC Topic 605 basis to be as follows: revenue of $2.105B, GAAP net income per diluted share of $1.06 and non-GAAP net income per diluted share of $1.74.

The Company has a PEG ratio of 9.19. The PEG ratio is used to determine a stock’s value while taking the company’s earnings growth into account. A look on the firm performance, its monthly performance is 2.06 percent and a quarterly performance of 11.98 percent. The stock price is trading upbeat from its 200 days moving average with 9.10 percent and up from 50 days moving average with 2.99 percent.

 

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Gary Williams

Written by Gary Williams

Gary Williams:- Technology

I am Gary Williams and I’m passionate about business and finance news with over 9 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind newsstoriesworld.com with a vision to broaden the company’s readership throughout 2015. I am an editor and reporter of “Technology” category.

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