In its upcoming report, Cadence Design Systems (CDNS) is predicted by Wall Street analysts to post quarterly earnings of $1.49 per share, reflecting an increase of 27.4% compared to the same period last year. Revenues are forecasted to be $1.24 billion, representing a year-over-year increase of 22.7%.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
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 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.
With that in mind, let's delve into the average projections of some Cadence metrics that are commonly tracked and projected by analysts on Wall Street.
The combined assessment of analysts suggests that 'Revenue- Product and maintenance' will likely reach $1.13 billion. The estimate suggests a change of +23.9% year over year.
The consensus among analysts is that 'Revenue- Services' will reach $105.39 million. The estimate suggests a change of +10.1% year over year.
The consensus estimate for 'Revenue Mix by Product Group - System Design and Analysis' stands at 15.3%. Compared to the current estimate, the company reported 12% in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Revenue Mix by Product Group - IP' should arrive at 12.1%. Compared to the present estimate, the company reported 12% in the same quarter last year.
Analysts forecast 'Revenue Mix by Product Group - Custom IC Design and Simulation' to reach 19.7%. Compared to the current estimate, the company reported 22% in the same quarter of the previous year.
Analysts' assessment points toward 'Revenue Mix by Product Group - Functional Verification, including Emulation Hardware' reaching 25.4%. Compared to the current estimate, the company reported 25% in the same quarter of the previous year.
The average prediction of analysts places 'Revenue Mix by Product Group - Digital IC Design and Signoff' at 25.2%. The estimate is in contrast to the year-ago figure of 29%.
View all Key Company Metrics for Cadence here>>>
Over the past month, Cadence shares have recorded returns of -4.1% versus the Zacks S&P 500 composite's -6.6% change. Based on its Zacks Rank #4 (Sell), CDNS will likely underperform the overall market in the upcoming period. 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
