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Here's What to Expect Ahead of Cadence's (CDNS) Q4 Earnings
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Cadence Design Systems (CDNS - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 13.
For the fourth quarter, Cadence expects total revenues in the range of $870-$890 million. The Zacks Consensus Estimate for revenues is currently pegged at $880.6 million, suggesting an increase of 13.9% year over year.
Management projects non-GAAP earnings in the range of 89-93 cents per share. The Zacks Consensus Estimate for earnings has been steady at 91 cents in the past 30 days, indicating an increase of 11% from the prior-year quarter’s reported figure.
Cadence Design Systems, Inc. Price and EPS Surprise
For 2022, Cadence expects revenues to be in the range of $3.53-$3.55 billion while non-GAAP earnings are expected in the range of $4.20-$4.24 per share.
The company has a trailing four-quarter earnings surprise of 10.4%, on average. Shares of Cadence have gained 25.1% in the past year against the sub-industry’s decline of 12.3%.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum witnessed in the company’s digital, custom, functional, and IP solutions along with an improving backlog are likely to have acted as tailwinds.
Secular trends like 5G, 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 semiconductor chips. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications
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.
New products and strong uptake of the company’s existing solutions like Palladium Z2 and Protium X2 systems, Cerebrus, Clarity 3D Transient Solver, Sigrity-X, and Xcelium Logic are likely to have driven fourth-quarter performance.
Various strategic collaborations and synergies from the acquisitions (Integrand, AWR, Pointwise and NUMECA) are anticipated to have contributed to the company’s top line.
However, ongoing uncertainty prevailing over the global macroeconomic conditions, surging inflation and geopolitical instability in Europe remain concerns. 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 conclusively 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 -0.55% 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 on earnings this season.
The Zacks Consensus Estimate for KO’s to-be-reported quarter’s earnings and revenues are pegged at 45 cents per share and $10.01 billion, respectively. Shares of the company have lost 2.9% in the past year.
Tripadvisor (TRIP - Free Report) has an Earnings ESP of +112.9% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 14.
The Zacks Consensus Estimate for TRIP’s to-be-reported quarter’s earnings and revenues are pegged at 5 cents per share and $343.8 million, respectively. Shares of the company have lost 13.7% in the past year.
Fastly (FSLY - Free Report) has an Earnings ESP of +3.03% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate are pegged at loss of 12 cents per share and $114.4 million for revenues, respectively. Shares of FSLY have gained 64.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Here's What to Expect Ahead of Cadence's (CDNS) Q4 Earnings
Cadence Design Systems (CDNS - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 13.
For the fourth quarter, Cadence expects total revenues in the range of $870-$890 million. The Zacks Consensus Estimate for revenues is currently pegged at $880.6 million, suggesting an increase of 13.9% year over year.
Management projects non-GAAP earnings in the range of 89-93 cents per share. The Zacks Consensus Estimate for earnings has been steady at 91 cents in the past 30 days, indicating an increase of 11% from the prior-year quarter’s reported figure.
Cadence Design Systems, Inc. Price and EPS Surprise
Cadence Design Systems, Inc. price-eps-surprise | Cadence Design Systems, Inc. Quote
For 2022, Cadence expects revenues to be in the range of $3.53-$3.55 billion while non-GAAP earnings are expected in the range of $4.20-$4.24 per share.
The company has a trailing four-quarter earnings surprise of 10.4%, on average. Shares of Cadence have gained 25.1% in the past year against the sub-industry’s decline of 12.3%.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum witnessed in the company’s digital, custom, functional, and IP solutions along with an improving backlog are likely to have acted as tailwinds.
Secular trends like 5G, 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 semiconductor chips. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications
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.
New products and strong uptake of the company’s existing solutions like Palladium Z2 and Protium X2 systems, Cerebrus, Clarity 3D Transient Solver, Sigrity-X, and Xcelium Logic are likely to have driven fourth-quarter performance.
Various strategic collaborations and synergies from the acquisitions (Integrand, AWR, Pointwise and NUMECA) are anticipated to have contributed to the company’s top line.
However, ongoing uncertainty prevailing over the global macroeconomic conditions, surging inflation and geopolitical instability in Europe remain concerns. 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 conclusively 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 -0.55% 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 on earnings this season.
The Coca-Cola Company (KO - Free Report) has an Earnings ESP of +0.75% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 14. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KO’s to-be-reported quarter’s earnings and revenues are pegged at 45 cents per share and $10.01 billion, respectively. Shares of the company have lost 2.9% in the past year.
Tripadvisor (TRIP - Free Report) has an Earnings ESP of +112.9% and presently carries a Zacks Rank #3. The company is slated to release quarterly numbers on Feb 14.
The Zacks Consensus Estimate for TRIP’s to-be-reported quarter’s earnings and revenues are pegged at 5 cents per share and $343.8 million, respectively. Shares of the company have lost 13.7% in the past year.
Fastly (FSLY - Free Report) has an Earnings ESP of +3.03% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 15.
The Zacks Consensus Estimate are pegged at loss of 12 cents per share and $114.4 million for revenues, respectively. Shares of FSLY have gained 64.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.