- Cadence Design has increased its forecast for the full-year adjusted earnings per share (EPS) to a range of $6.73 to $6.83, slightly above the previous forecast.
- The revenue forecast for the full year is now set between $5.15 billion and $5.23 billion, a slight increase from the previous projection.
- Cadence maintains its adjusted operating margin forecast at 43.3% to 44.3%.
- In the first quarter, adjusted EPS was $1.57, exceeding both last year’s $1.17 and the estimate of $1.50.
- The first-quarter revenue was $1.24 billion, representing a 23% year-over-year increase, in line with estimates.
- Product and maintenance revenue reached $1.11 billion, a 22% rise from the previous year but slightly below the estimate.
- Services revenue surged 37% from the previous year to $131.5 million, significantly surpassing the estimate of $90.9 million.
- The adjusted operating margin for the first quarter was 41.7%, compared to 38% the previous year, and above the estimate of 40.8%.
- Adjusted net income for the quarter was $430.4 million, a 35% increase year-over-year, exceeding the estimate of $412.2 million.
- John Wall, the senior vice president and chief financial officer, commented that the first quarter was robust, with strength across all business areas.
- Analyst ratings include 18 buys, 3 holds, and 1 sell.
“`
Cadence Design Sys on Smartkarma
Analysts on Smartkarma, like Baptista Research, are optimistic about Cadence Design Systems. According to Baptista Research, Cadence reported strong results for the fourth quarter of 2024, achieving notable revenue and operating margins. The company’s AI-powered EDA tools are seen as revolutionary in chip design, driving a record backlog of $6.8 billion. Partnerships with industry giants like NVIDIA and Qualcomm further showcase the increased adoption of Cadence’s AI products, such as Cadence Cerebrus and SimAI.
In another report by Baptista Research, Cadence’s efforts towards diversification and growth in system design and analysis have been applauded. The third quarter of 2024 saw impressive performance from Cadence, with total revenue surpassing $1.2 billion, marking a 19% year-over-year growth. The company achieved a non-GAAP operating margin of 44.8% and non-GAAP earnings per share of $1.64, reflecting a positive outlook on Cadence’s future prospects.
A look at Cadence Design Sys Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Cadence Design Systems has a positive long-term outlook. The company scores high in Growth, Resilience, and Momentum, indicating strong potential for future expansion and stability. Cadence is positioned well for growth with its innovative technology solutions and robust performance in the market. Additionally, its resilience and momentum suggest the company is able to adapt to changing market conditions and maintain a positive growth trajectory over time.
Cadence Design Systems, Inc. is a software technology and consulting services provider that specializes in electronic design automation. With a focus on developing complex chips and electronic systems, Cadence offers a range of design realization solutions to its clients. Looking ahead, the company’s strong performance in Growth, Resilience, and Momentum signals a promising future for Cadence, making it an attractive option for investors seeking long-term opportunities in the technology sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
