- Cadence Design Systems’ 2025 adjusted EPS forecast ranges from $6.65 to $6.75, below the estimate of $6.82.
- Projected revenue for 2025 is between $5.14 billion and $5.22 billion, slightly below the estimate of $5.24 billion.
- The anticipated adjusted operating margin for 2025 is between 43.3% and 44.3%, compared to the estimate of 43.9%.
- In the fourth quarter, adjusted EPS reached $1.88, surpassing last year’s $1.38 and exceeding the estimate of $1.83.
- Revenue for Q4 was $1.36 billion, marking a 27% increase year-over-year, and just above the expected $1.35 billion.
- Product and maintenance revenue increased by 26% year-over-year, totaling $1.24 billion, matching the estimate.
- Services revenue in Q4 grew 35% year-over-year to $116.7 million, outperforming the expected $109.5 million.
- The adjusted operating margin for the quarter was 46%, up from 43% the previous year, and slightly above the estimate of 45.9%.
- Adjusted net income for Q4 was $515.7 million, which is a 37% increase year-over-year, exceeding the expectation of $503 million.
- Anirudh Devgan, CEO, highlighted the exceptional results in Q4, noting 13.5% revenue growth and a 42.5% non-GAAP operating margin for 2024.
- John Wall, CFO, remarked on the strong finish to 2024, citing broad-based success across all business areas.
- Cadence has received 17 buy ratings, 3 hold ratings, and 1 sell rating from analysts.
Cadence Design Sys on Smartkarma
Analyst coverage on Smartkarma for Cadence Design Systems is positive, with a bullish sentiment highlighted in research by Baptista Research. In their report titled “Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers,” the analysis focuses on the company’s strong performance in the third quarter of 2024. Cadence Design Systems reported impressive financial results, surpassing $1.2 billion in total revenue, marking a 19% year-over-year growth. The company also achieved a non-GAAP operating margin of 44.8% and non-GAAP earnings per share of $1.64, indicating solid financial health.
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 Smartkarma Smart Scores for Cadence Design Systems, the company’s long-term outlook appears promising. With high scores in Growth, Resilience, and Momentum, Cadence Design Systems is positioned well for future success. The strong emphasis on growth indicates potential for expansion and market opportunities. Meanwhile, the high resilience and momentum scores suggest the company’s ability to weather challenges and maintain positive performance trends over time.
Cadence Design Systems, Inc. provides software technology, design, and consulting services for electronic design automation. With a focus on developing complex chips and electronic systems, including semiconductors, Cadence offers a diverse range of professional services. Despite lower scores in Value and Dividend, the company’s strengths in growth, resilience, and momentum bode well for its overall outlook in the long run.
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.
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