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What to Expect Ahead of Cadence (CDNS) Q1 Earnings Release
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Cadence Design Systems Inc (CDNS - Free Report) is scheduled to release first-quarter 2022 results on Apr 25.
For the first quarter, Cadence expects total revenues in the range of $850-$870 million. The Zacks Consensus Estimate for revenues is currently pegged at $859 million, suggesting an increase of 16.7% year over year.
Management projects non-GAAP earnings in the range of $1.00-$1.04 per share. The consensus mark for earnings has been steady at $1.01 in the past 30 days, indicating an increase of 21.7% from the prior-year quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 9.7%, on average. Shares of Cadence have gained 12.2% in the past year compared with the industry’s rally of 2.3%
Cadence Design Systems, Inc. Price and EPS Surprise
Acceleration in chip design activity and increasing system design complexity are expected to have boosted demand for Cadence’s system design and verification solutions among semiconductor companies in the to-be-reported quarter.
Deployment of 5G and increasing usage of hyperscale computing and emerging technologies like Artificial Intelligence and machine learning are fueling digital transformation across various end markets and boosting demand for advanced semiconductors chips.
Continued momentum witnessed in the company’s digital & signoff, custom & analog and IP solutions and an improving backlog are likely to have acted as a tailwind. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications.
The introduction of new products and a strong uptake of the company’s existing solutions like Palladium Z2 and the Protium X2 systems, Clarity 3D Transient Solver, Sigrity-X, Xcelium Logic, Spectre X Simulator, Smart JasperGold and Tensilica Vision Q7 is likely to have driven first-quarter performance. In 2021, Cadence introduced 13 new products, including Cadence Helium Virtual and Hybrid Studio, Midas Safety platform and Allegro X.
Various strategic collaborations also bode well for Cadence. In February 2022, Cadence collaborated with Dassault to provide enterprise customers with the latest solutions for developing high-performance electronic systems across various verticals like high tech, transportation & mobility, aerospace & defense and healthcare, among others.
In March, Cadence collaborated with GF to expedite the development of next-generation silicon photonics integrated circuit designs for 5G communications, hyperscale computing, healthcare, automotive, Internet of Things (IoT) and aerospace systems. Through this alliance, the comprehensive Cadence photonics solution, which supports the GF Fotonix platform, will offer customers a production-proven design platform for electronic/photonic design, simulation and analysis.
Synergies from the Integrand and AWR buyouts along with the recent acquisitions of Pointwise and NUMECA are anticipated to have contributed to the company’s top line.
Continued supply chain constraints, component shortages and logistic bottlenecks witnessed globally stemming from the pandemic are likely to have affected the company’s performance. Increasing expenses on product development amid stiff competition in the electronic design automation space might have impeded margin expansion in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Cadence has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 26.7% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +3.23% and currently has a Zacks Rank #3. Sirius XM is scheduled to report earnings results on Apr 28.
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have gained 1.8% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 4% in the past year.
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What to Expect Ahead of Cadence (CDNS) Q1 Earnings Release
Cadence Design Systems Inc (CDNS - Free Report) is scheduled to release first-quarter 2022 results on Apr 25.
For the first quarter, Cadence expects total revenues in the range of $850-$870 million. The Zacks Consensus Estimate for revenues is currently pegged at $859 million, suggesting an increase of 16.7% year over year.
Management projects non-GAAP earnings in the range of $1.00-$1.04 per share. The consensus mark for earnings has been steady at $1.01 in the past 30 days, indicating an increase of 21.7% from the prior-year quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 9.7%, on average. Shares of Cadence have gained 12.2% in the past year compared with the industry’s rally of 2.3%
Cadence Design Systems, Inc. Price and EPS Surprise
Cadence Design Systems, Inc. price-eps-surprise | Cadence Design Systems, Inc. Quote
Factors Likely to Have Influenced Q1 Performance
Acceleration in chip design activity and increasing system design complexity are expected to have boosted demand for Cadence’s system design and verification solutions among semiconductor companies in the to-be-reported quarter.
Deployment of 5G and increasing usage of hyperscale computing and emerging technologies like Artificial Intelligence and machine learning are fueling digital transformation across various end markets and boosting demand for advanced semiconductors chips.
Continued momentum witnessed in the company’s digital & signoff, custom & analog and IP solutions and an improving backlog are likely to have acted as a tailwind. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications.
The introduction of new products and a strong uptake of the company’s existing solutions like Palladium Z2 and the Protium X2 systems, Clarity 3D Transient Solver, Sigrity-X, Xcelium Logic, Spectre X Simulator, Smart JasperGold and Tensilica Vision Q7 is likely to have driven first-quarter performance. In 2021, Cadence introduced 13 new products, including Cadence Helium Virtual and Hybrid Studio, Midas Safety platform and Allegro X.
Various strategic collaborations also bode well for Cadence. In February 2022, Cadence collaborated with Dassault to provide enterprise customers with the latest solutions for developing high-performance electronic systems across various verticals like high tech, transportation & mobility, aerospace & defense and healthcare, among others.
In March, Cadence collaborated with GF to expedite the development of next-generation silicon photonics integrated circuit designs for 5G communications, hyperscale computing, healthcare, automotive, Internet of Things (IoT) and aerospace systems. Through this alliance, the comprehensive Cadence photonics solution, which supports the GF Fotonix platform, will offer customers a production-proven design platform for electronic/photonic design, simulation and analysis.
Synergies from the Integrand and AWR buyouts along with the recent acquisitions of Pointwise and NUMECA are anticipated to have contributed to the company’s top line.
Continued supply chain constraints, component shortages and logistic bottlenecks witnessed globally stemming from the pandemic are likely to have affected the company’s performance. Increasing expenses on product development amid stiff competition in the electronic design automation space might have impeded margin expansion in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Cadence has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
Apple (AAPL - Free Report) has an Earnings ESP of +0.54% and currently carries a Zacks Rank #2. Apple is slated to release quarterly numbers on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 26.7% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +3.23% and currently has a Zacks Rank #3. Sirius XM is scheduled to report earnings results on Apr 28.
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have gained 1.8% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 4% in the past year.