Wall Street analysts forecast that Cadence Design Systems (CDNS) will report quarterly earnings of $1.57 per share in its upcoming release, pointing to a year-over-year increase of 22.7%. It is anticipated that revenues will amount to $1.26 billion, exhibiting an increase of 18.7% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Cadence metrics that Wall Street analysts commonly model and monitor.
Analysts expect 'Revenue- Product and maintenance' to come in at $1.15 billion. The estimate points to a change of +19.6% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenue- Services' of $112.09 million. The estimate indicates a change of +11.8% from the prior-year quarter.
Analysts' assessment points toward 'Order Backlog' reaching $6.13 billion. The estimate compares to the year-ago value of $6.00 billion.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have demonstrated returns of +7.7% over the past month compared to the Zacks S&P 500 composite's +5.9% change. With a Zacks Rank #4 (Sell), CDNS is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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