Exploring Cadence Design Sys's Earnings Expectations
Cadence Design Sys (NASDAQ:CDNS) is preparing to release its quarterly earnings on Monday, 2025-04-28. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Cadence Design Sys to report an earnings per share (EPS) of $1.50.
The announcement from Cadence Design Sys is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings History Snapshot
The company's EPS beat by $0.06 in the last quarter, leading to a 8.78% drop in the share price on the following day.
Here's a look at Cadence Design Sys's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.82 | 1.44 | 1.22 | 1.13 |
| EPS Actual | 1.88 | 1.64 | 1.28 | 1.17 |
| Price Change % | -9.0% | 13.0% | -1.0% | -1.0% |
Cadence Design Sys Share Price Analysis
Shares of Cadence Design Sys were trading at $281.78 as of April 24. Over the last 52-week period, shares are down 0.08%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Views on Cadence Design Sys
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Cadence Design Sys.
The consensus rating for Cadence Design Sys is Outperform, derived from 9 analyst ratings. An average one-year price target of $310.89 implies a potential 10.33% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Synopsys, AppLovin and Workday, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $598.5, suggesting a potential 112.4% upside.
- Analysts currently favor an Buy trajectory for AppLovin, with an average 1-year price target of $476.4, suggesting a potential 69.07% upside.
- Analysts currently favor an Outperform trajectory for Workday, with an average 1-year price target of $303.36, suggesting a potential 7.66% upside.
Snapshot: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Synopsys, AppLovin and Workday, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Cadence Design Systems | Outperform | 26.89% | $1.14B | 7.37% |
| Synopsys | Outperform | -3.68% | $1.19B | 3.23% |
| AppLovin | Buy | 44.01% | $1.05B | 59.04% |
| Workday | Outperform | 15.04% | $1.67B | 1.06% |
Key Takeaway:
Cadence Design Systems ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity compared to its peers.
Discovering Cadence Design Sys: A Closer Look
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
Understanding the Numbers: Cadence Design Sys's Finances
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Cadence Design Sys's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.89% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: Cadence Design Sys's net margin excels beyond industry benchmarks, reaching 25.09%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Cadence Design Sys's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.37%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.75%, the company showcases effective utilization of assets.
Debt Management: Cadence Design Sys's debt-to-equity ratio surpasses industry norms, standing at 0.55. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Cadence Design Sys visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.