Electronic design automation company Cadence Design Systems (NASDAQ: CDNS) will be reporting results this Monday after market close. Here’s what you need to know.
Cadence Design Systems beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.28 billion, up 20.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
Is Cadence Design Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cadence Design Systems’s revenue to grow 9.2% year on year to $1.33 billion, slowing from the 18.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cadence Design Systems has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Cadence Design Systems’s peers in the vertical software segment, only Adobe has reported results so far. It beat analysts’ revenue estimates by 1.4%, delivering year-on-year sales growth of 10.7%. The stock price was unchanged following the results.
Read our full analysis of Adobe’s earnings results here.Investors in the vertical software segment have had steady hands going into earnings, with share prices flat over the last month. Cadence Design Systems’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $370.84 (compared to the current share price of $347.60).
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