Cadence Design Systems Earnings: Here’s Why the Stock is Rising Now

Cadence Design Systems Inc. (NASDAQ:CDNS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.12%.

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Cadence Design Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.53% to $0.21 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 12.17% to $354.26 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cadence Design Systems Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.19. It beat the average revenue estimate of $347.34 million.

Quoting Management: “In Q1 we accelerated our IP strategy through key acquisitions that will expand the scope of our IP business and demonstrate our capabilities and readiness for FinFET-based high performance design, and we also saw significant strength in repeat orders for Palladium XP,” said Lip-Bu Tan, president and chief executive officer. “Looking ahead, I expect to see our focus and discipline in scaling our IP business start to show meaningful growth.”

Key Stats (on next page)…

Revenue increased 2.51% from $345.59 million in the previous quarter. EPS increased 5% from $0.20 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.22 and has not changed. For the current year, the average estimate has moved down from a profit of $0.91 to a profit of $0.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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