Cadence Design Systems (CDNS - Free Report) reported $1.07 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 18.8%. EPS of $1.38 for the same period compares to $0.96 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.07 billion, representing a surprise of +0.27%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $1.34.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue Mix by Product Group - Functional Verification, including Emulation Hardware: 24% compared to the 25.9% average estimate based on three analysts.
- Revenue Mix by Product Group - Digital IC Design and Signoff: 29% compared to the 28.5% average estimate based on three analysts.
- Revenue Mix by Product Group - IP: 13% compared to the 10.8% average estimate based on three analysts.
- Revenue Mix by Product Group - System Design and Analysis: 12% versus 13.9% estimated by three analysts on average.
- Revenue Mix by Product Group - Custom IC Design: 22% compared to the 20.9% average estimate based on three analysts.
- Revenue- Product and maintenance: $981.99 million compared to the $999.84 million average estimate based on five analysts. The reported number represents a change of +16.1% year over year.
- Revenue- Services: $86.64 million compared to the $62.04 million average estimate based on five analysts. The reported number represents a change of +60.5% year over year.
View all Key Company Metrics for Cadence here>>>Shares of Cadence have returned +14.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Cadence Design Systems (CDNS - Free Report) reported $1.07 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 18.8%. EPS of $1.38 for the same period compares to $0.96 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.07 billion, representing a surprise of +0.27%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $1.34.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue Mix by Product Group - Functional Verification, including Emulation Hardware: 24% compared to the 25.9% average estimate based on three analysts.
- Revenue Mix by Product Group - Digital IC Design and Signoff: 29% compared to the 28.5% average estimate based on three analysts.
- Revenue Mix by Product Group - IP: 13% compared to the 10.8% average estimate based on three analysts.
- Revenue Mix by Product Group - System Design and Analysis: 12% versus 13.9% estimated by three analysts on average.
- Revenue Mix by Product Group - Custom IC Design: 22% compared to the 20.9% average estimate based on three analysts.
- Revenue- Product and maintenance: $981.99 million compared to the $999.84 million average estimate based on five analysts. The reported number represents a change of +16.1% year over year.
- Revenue- Services: $86.64 million compared to the $62.04 million average estimate based on five analysts. The reported number represents a change of +60.5% year over year.
View all Key Company Metrics for Cadence here>>>Shares of Cadence have returned +14.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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