- Cadence Design has increased its adjusted EPS forecast for the fiscal year, now predicting $5.07 to $5.13, up from the previous $5.05 to $5.11.
- The company’s adjusted operating margin is expected to be between 41.5% and 42%.
- For the third quarter, Cadence reported an adjusted EPS of $1.26, an increase from last year’s $1.06.
- The company’s revenue for the quarter was $1.02 billion, a 13% increase year over year.
- Product and maintenance revenue was $965.8 million, a 14% increase from the previous year.
- Services revenue slightly increased by 0.9% to $57.3 million.
- The adjusted operating margin for the third quarter was 41%, an improvement from the 39% of the previous year.
- Adjusted net income for the quarter was $343.1 million, an 18% increase year over year.
- For the fourth quarter of 2023, Cadence expects total revenue to be between $1.039 billion and $1.079 billion.
- The company’s operating margin for 2023 is expected to be between 41.5% and 42%.
- Net income per diluted share for 2023 is expected to be in the range of $5.07 to $5.13.
- John Wall, the senior vice president and chief financial officer, stated that the strong Q3 results were driven by growth across all businesses.
Cadence Design Sys on Smartkarma
Analysts at the independent investment research network Smartkarma have published two research reports on Cadence Design Sys. In the first report, “Cadence Design Systems Inc.: Shaping the Future of AI with its Unique Products? – Key Drivers”, published by Baptista Research, analysts noted that Cadence exceeded the revenue and earnings expectations of Wall Street for the second quarter of 2023, resulting in year-over-year 14% revenue growth and 19% non-GAAP EPS growth. The report concluded by giving Cadence Design Systems a ‘Hold’ rating with a revised target price.
The second report, “Cadence Design Systems Inc: A Real Powerhouse In System Design & Analysis – Key Drivers” by Baptista Research, noted that Cadence Design had a solid quarter and managed an all-around beat with growth across all its business groups. The System Design & Analysis business group achieved double-digit growth, increasing revenue by 17% year-on-year and expanding its footprint in several verticals, including Aerospace & Defense and 5G communications. This report also gave Cadence Design Systems a ‘Hold’ rating with a revised target price.
A look at Cadence Design Sys Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 1 | |
Growth | 3 | |
Resilience | 4 | |
Momentum | 4 | |
OVERALL SMART SCORE | 2.8 |
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
Cadence Design Systems, Inc. is a leading provider of software technology, design, and consulting services. The company offers its electronic design automation software technology and professional services to develop complex chips and electronic systems, such as semiconductors. Smartkarma Smart Scores have given Cadence Design Systems, Inc. an overall outlook of 2-4 on Value, Dividend, Growth, Resilience, and Momentum.
The long-term outlook for Cadence Design Systems, Inc. is positive, with a score of 4 on Resilience and Momentum. This indicates that the company is well-positioned to face any challenges and capitalize on opportunities in the future. Furthermore, the score of 3 on Growth indicates that the company is likely to experience steady growth in the long run. With these scores, Cadence Design Systems, Inc. is in a strong position to continue to provide its software technology, design, and consulting services.
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