NEW YORK (TheStreet) -- Shares of Cadence Design Systems (CDNS) - Get Report were declining in after-hours trading on Monday after the company posted soft revenue for the 2016 third quarter and gave downbeat guidance.
After today's market close, the San Jose, CA-based electronic design automation software company reported revenue of $446.22 million, while analysts were expecting revenue of $446.52 million.
Adjusted earnings of 30 cents per diluted share exceeded analysts' forecasts of 28 cents per share.
For the fourth quarter, Cadence sees adjusted earnings per share between 32 cents and 34 cents on revenue of $463 million to $473 million. Analysts are modeling earnings of 35 cents per share on revenue of $472 million.
Full-year earnings per share are projected to be between $1.19 and $1.21 on revenue of $1.81 billion to $1.82 billion. Wall Street is estimating $1.20 per share on revenue of $1.82 billion for 2016.
About 2.83 million of the company's shares changed hands so far today vs. its average volume of 1.78 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CDNS