Wall Street analysts forecast that Cadence Design Systems (CDNS) will report quarterly earnings of $1.90 per share in its upcoming release, pointing to a year-over-year increase of 1.1%. It is anticipated that revenues will amount to $1.42 billion, exhibiting an increase of 5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Cadence metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenue- Product and maintenance' will reach $1.29 billion. The estimate indicates a year-over-year change of +4.5%.
Based on the collective assessment of analysts, 'Revenue- Services' should arrive at $128.33 million. The estimate points to a change of +10% from the year-ago quarter.
According to the collective judgment of analysts, 'Order Backlog' should come in at $7.42 billion. The estimate compares to the year-ago value of $6.80 billion.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have experienced a change of -7.5% in the past month compared to the -0.3% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), CDNS is expected to underperform the overall market 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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