Shares of Cadence Design Systems Inc. (CDNS) - Get Cadence Design Systems, Inc. Report soared 7.01% to $56.33 in premarket trading Wednesday after the hardware and software products maker beat Wall Street's fourth-quarter earnings expectations.

The San Jose-based company reported net income of $98.4 million, or 35 cents a share. Adjusted earnings came to 52 cents a share, beating Wall Street's expectations of 48 cents. Cadence reported a loss a year ago.

Revenue totaled $569.9 million, up from the year-ago figure of $501.7 million a year ago, and beat analysts' forecasts of $550.8 million.

For the year, the company reported profit of $345.8 million, or $1.23 a share. Revenue totaled $2.14 billion.

TheStreet Recommends

For the current quarter ending in April, Cadence said it expects its earnings to range from 48 cents to 50 cents a share. Revenue is expected to range from $565 million to $575 million for the fiscal first quarter.

Cadence said it expects full-year earnings in the range of $1.97 to $2.07 a share, with revenue ranging from $2.27 billion to $2.31 billion.

"Cadence achieved excellent operating results for 2018 as technology trends like AI, cloud/datacenter and 5G drove strong design activity," CEO Lip-Bu Tan said in a statement. ""We continued to execute our System Design Enablement strategy, leading to broad strength across our product lines, as well as in the aerospace/defense vertical, and we announced our partnership with Green Hills Software, the leader in embedded safety and security software."