What Happened:
Shares of semiconductor design software provider Cadence Design Systems (NASDAQ:CDNS) fell 6.09% in the pre-market session after the company reported first-quarter revenue and operating profit that narrowly beat analysts' expectations. However, the next-quarter outlook was below expectations, as it forecasted weaker sales and operating profit than analysts had anticipated.
What is the market telling us:
Cadence's shares are somewhat volatile and over the last year have had 11 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Cadence is up 28% since the beginning of the year, and at $204.45 per share it is trading close to its 52-week high of $217.01 from April 2023. Investors who bought $1,000 worth of Cadence's shares 5 years ago would now be looking at an investment worth $5,160.
Is now the time to buy Cadence? Access our full analysis of the earnings results here, it's free.