Wall Street analysts forecast that Cadence Design Systems (CDNS) will report quarterly earnings of $1.79 per share in its upcoming release, pointing to a year-over-year increase of 9.2%. It is anticipated that revenues will amount to $1.32 billion, exhibiting an increase of 9% 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.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Cadence metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus estimate for 'Revenue- Product and maintenance' stands at $1.21 billion. The estimate suggests a change of +9.7% year over year.
The collective assessment of analysts points to an estimated 'Revenue- Services' of $116.95 million. The estimate suggests a change of +1.6% year over year.
The average prediction of analysts places 'Order Backlog' at $6.21 billion. The estimate is in contrast to the year-ago figure of $5.60 billion.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have demonstrated returns of -9% over the past month compared to the Zacks S&P 500 composite's +1.1% change. With a Zacks Rank #3 (Hold), CDNS is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
