Cadence Reports Strong Earnings – Yet the Stock Falls

Cadence Design Systems reported strong results for Q3. The stock fell in after-hours trading. The adjusted earnings per share rose to $1.93 according to FactSet, surpassing the Wall Street consensus estimate of $1.79 and the previous year's figure of $1.64. Quarterly revenues reached $1.34 billion, which was better than expectations of $1.32 billion and represents a 10% increase year over year. Analysts are closely monitoring Cadence's adjusted operating margin, which was 47.6% in Q3, again exceeding analyst estimates and above the previous year's...