Cadence Design Stock Drops Nearly 4% on Lighter-Than-Expected Q4 Guidance
Shares of Cadence Design Systems (NASDAQ: CDNS) were down 3.7% in after-hours trading on Monday, following the release of the third-quarter 2023 report for the provider of design solutions for the electronics industry.
The likely reason for the decline is fourth-quarter guidance coming in lighter than Wall Street had expected for both revenue and adjusted earnings.
Adding to the weaker-than-anticipated outlook, investors are likely concerned about the prospects for the broad semiconductor industry. Along with inflation still running higher than the Federal Reserve's target rate, there are recent new factors that could affect the macro environment: a war and increased geopolitical tensions in the Middle East, and the U.S. government's expansion of restrictions on the export of certain chips and systems for data centers to China and select other countries.
Source Fool.com
