Cadence Design Systems Inc.’s stock rose 7% to $145 in after-hours trading on a bullish outlook following a stronger-than-expected fourth-quarter performance.
The company, which ended the year with $4.4 billion backlog, expects to make 70 cents to 74 cents a share this year, or $1 to $1.04 a share as adjusted, on $850 million to $870 million in revenue. For the year, it expects a profit of $2.46 to $2.56 a share, or $3.70 to $3.80 a share as adjusted, and $3.32 billion to $3.38 billion in revenue.
The first-quarter forecast is well ahead of analysts’ projections, according to FactSet. For the year, analysts expect a profit of $2.56 a share, or $3.58 a share as adjusted, and $3.23 billion in revenue.
The company, whose fourth-quarter performance beat projections, ended the year with a profit of $696 million on $2.99 billion in revenue, compared with a profit of $590.6 million and $2.68 billion in revenue for 2020.
“We accelerated our Intelligent System Design strategy, introducing over a dozen significant innovative products and making key strategic acquisitions,” Chief Executive Anirudh Devgan said in a statement, adding that generational industry trends continued to drive robust design ctivity at semiconductor and system companies.