Compared to Estimates, Cadence (CDNS) Q4 Earnings: A Look at Key Metrics
Cadence Design Systems (CDNS) reported $1.07 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 18.8%. EPS of $1.38 for the same period compares to $0.96 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.07 billion, representing a surprise of +0.27%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $1.34.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue Mix by Product Group - Functional Verification, including Emulation Hardware: 24% compared to the 25.9% average estimate based on three analysts.
Revenue Mix by Product Group - Digital IC Design and Signoff: 29% compared to the 28.5% average estimate based on three analysts.
Revenue Mix by Product Group - IP: 13% compared to the 10.8% average estimate based on three analysts.
Revenue Mix by Product Group - System Design and Analysis: 12% versus 13.9% estimated by three analysts on average.
Revenue Mix by Product Group - Custom IC Design: 22% compared to the 20.9% average estimate based on three analysts.
Revenue- Product and maintenance: $981.99 million compared to the $999.84 million average estimate based on five analysts. The reported number represents a change of +16.1% year over year.
Revenue- Services: $86.64 million compared to the $62.04 million average estimate based on five analysts. The reported number represents a change of +60.5% year over year.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have returned +14.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
