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Cadence (CDNS) Reports Q2 Earnings: What Key Metrics Have to Say
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Cadence Design Systems (CDNS - Free Report) reported $976.58 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 13.9%. EPS of $1.22 for the same period compares to $1.08 a year ago.
The reported revenue represents a surprise of +0.35% over the Zacks Consensus Estimate of $973.22 million. With the consensus EPS estimate being $1.18, the EPS surprise was +3.39%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 27% compared to the 26.24% average estimate based on two analysts.
Revenue Mix by Product Group - Digital IC Design and Signoff: 27% compared to the 27.75% average estimate based on two analysts.
Revenue Mix by Product Group - IP: 11% versus the two-analyst average estimate of 12.01%.
Revenue Mix by Product Group - System Design and Analysis: 13% versus the two-analyst average estimate of 12.75%.
Revenue Mix by Product Group - Custom IC Design: 22% versus 21.26% estimated by two analysts on average.
Revenue- Product and maintenance: $922.79 million compared to the $899.77 million average estimate based on five analysts. The reported number represents a change of +15% year over year.
Revenue- Services: $53.79 million versus $58.93 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change.
Shares of Cadence have returned +7.8% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Cadence (CDNS) Reports Q2 Earnings: What Key Metrics Have to Say
Cadence Design Systems (CDNS - Free Report) reported $976.58 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 13.9%. EPS of $1.22 for the same period compares to $1.08 a year ago.
The reported revenue represents a surprise of +0.35% over the Zacks Consensus Estimate of $973.22 million. With the consensus EPS estimate being $1.18, the EPS surprise was +3.39%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 27% compared to the 26.24% average estimate based on two analysts.
- Revenue Mix by Product Group - Digital IC Design and Signoff: 27% compared to the 27.75% average estimate based on two analysts.
- Revenue Mix by Product Group - IP: 11% versus the two-analyst average estimate of 12.01%.
- Revenue Mix by Product Group - System Design and Analysis: 13% versus the two-analyst average estimate of 12.75%.
- Revenue Mix by Product Group - Custom IC Design: 22% versus 21.26% estimated by two analysts on average.
- Revenue- Product and maintenance: $922.79 million compared to the $899.77 million average estimate based on five analysts. The reported number represents a change of +15% year over year.
- Revenue- Services: $53.79 million versus $58.93 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change.
View all Key Company Metrics for Cadence here>>>Shares of Cadence have returned +7.8% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.