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Shares of Cadence Design Systems Inc. (CDNS) - Get Free Report rose in after-hours trading Monday after the company posted better-than-expected third-quarter results.

The stock gained $3.45, or 5.1%, to $70.20 in after-hours trading.

The company reported revenue of $580 million for the period, vs. $532 million a year earlier. Earnings per share rose to 54 cents, vs. 49 cents a year earlier.

Analysts surveyed by FactSet had exepected revenue of $576.1 million and earnings of 51 cents a share. 

"Major industry trends led by AI and data analytics are driving strong design activity," said Lip-Bu Tan, chief executive officer of the company in a statement.

Cadence forecasted fourth-quarter revenue between $590 million and $600 million. Analysts surveyed by FactSet are looking for $591.9 million.

The company said net income per diluted share will be between 52 cent and 54 cents. Analysts had forecast 52 cents ahead of the release.