Cadence Design Systems Earnings Calls

Q4 2024 (Upcoming)
Release date Feb 18, 2025
EPS estimate $1.82
EPS actual -
Revenue estimate 1.347B
Revenue actual -
Expected change +/- 2.30%
Q3 2024 Beat
$1.64 (12.33%)
Release date Oct 28, 2024
EPS estimate $1.46
EPS actual $1.64
EPS Surprise 12.33%
Revenue estimate 1.181B
Revenue actual 1.215B
Revenue Surprise 2.90%
Q2 2024 Beat
$1.28 (4.07%)
Release date Jul 22, 2024
EPS estimate $1.23
EPS actual $1.28
EPS Surprise 4.07%
Revenue estimate 1.043B
Revenue actual 1.061B
Revenue Surprise 1.74%
Q1 2024 Beat
$1.17 (3.54%)
Release date Apr 22, 2024
EPS estimate $1.13
EPS actual $1.17
EPS Surprise 3.54%
Revenue estimate 1.002B
Revenue actual 1.009B
Revenue Surprise 0.683%

Last 4 Quarters for Cadence Design Systems

Below you can see how CDNS performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.

Q1 2024 Beat
Release date Apr 22, 2024
Fiscal end date Mar 31, 2024
Price on release $285.02
EPS estimate $1.13
EPS actual $1.17
EPS surprise 3.54%
Date Price
Apr 16, 2024 $300.81
Apr 17, 2024 $293.71
Apr 18, 2024 $285.90
Apr 19, 2024 $280.25
Apr 22, 2024 $285.02
Apr 23, 2024 $281.76
Apr 24, 2024 $277.66
Apr 25, 2024 $277.08
Apr 26, 2024 $282.41
4 days before -5.25%
4 days after -0.92%
On release day -1.14%
Change in period -6.12%
Q2 2024 Beat
Release date Jul 22, 2024
Fiscal end date Jun 30, 2024
Price on release $287.08
EPS estimate $1.23
EPS actual $1.28
EPS surprise 4.07%
Date Price
Jul 16, 2024 $311.73
Jul 17, 2024 $288.12
Jul 18, 2024 $277.83
Jul 19, 2024 $279.95
Jul 22, 2024 $287.08
Jul 23, 2024 $282.99
Jul 24, 2024 $266.34
Jul 25, 2024 $258.38
Jul 26, 2024 $258.79
4 days before -7.91%
4 days after -9.85%
On release day -1.42%
Change in period -16.98%
Q3 2024 Beat
Release date Oct 28, 2024
Fiscal end date Sep 30, 2024
Price on release $252.77
EPS estimate $1.46
EPS actual $1.64
EPS surprise 12.33%
Date Price
Oct 22, 2024 $251.51
Oct 23, 2024 $249.09
Oct 24, 2024 $251.28
Oct 25, 2024 $257.30
Oct 28, 2024 $252.77
Oct 29, 2024 $284.45
Oct 30, 2024 $290.00
Oct 31, 2024 $276.12
Nov 01, 2024 $282.09
4 days before 0.501%
4 days after 11.60%
On release day 12.53%
Change in period 12.16%
Q4 2024 (Upcoming)
Release date Feb 18, 2025
Fiscal end date Dec 30, 2024
Price on release -
EPS estimate $1.82
EPS actual -
Date Price
Feb 07, 2025 $299.68
Feb 10, 2025 $305.63
Feb 11, 2025 $303.87
Feb 12, 2025 $294.05
Feb 13, 2025 $296.16

Cadence Design Systems Earnings Call Transcript Summary of Q3 2024

  • Margins: GAAP operating margin was 28.8%, with non-GAAP operating margin at 44.8%. GAAP EPS was $0.87, and non-GAAP EPS was $1.64.
  • Cash Flow: Operating cash flow for the quarter was $410 million, with a cash balance of $2.786 billion.

Business Strategy and Trends:

  • AI and Intelligent System Design: The company is focusing heavily on AI integration across its products, leading to significant growth in the Cadence.AI portfolio, which saw sales nearly triple year-over-year.
  • Product Development: Cadence is innovating in design automation, particularly in chip-to-system platforms, empowering customers in sectors like hyperscale computing and automotive.
  • Market Demand: Increasing demand for Integrity 3D-IC solutions and Allegro X is noted, attributed to the growing complexity of designs in high-speed PCB and advanced chip applications.

Collaborations and Partnerships:

  • Creators of Innovation: Cadence expanded partnerships with NVIDIA, Arm, and TSMC, enhancing AI product capabilities and expanding IP offerings for next-generation designs.
  • Industry Trends: Generational trends around autonomous driving, 5G technology, and AI are driving strong design activity across verticals.

Outlook:

  • Revised 2024 Guidance: Full-year revenue is now expected between $4.61 billion and $4.65 billion, GAAP EPS projected to be in the range of $3.70 to $3.76, and non-GAAP EPS between $5.87 to $5.93.
  • Q4 Estimates: Projected revenue for Q4 is expected between $1.325 billion to $1.365 billion, with an optimistic bookings pipeline, which some executives consider the strongest they have seen.

Key Challenges and Opportunities:

  • China Market: Despite a dip in revenue, there is evidence of recovery with increasing design activity, particularly in the automotive sector.
  • Growth Segments: The IP business continues to show strong momentum, with over 50% year-over-year growth, driven by trends like advanced node adoption and hardware upgrades.

Conclusion:

Cadence is positioning itself well with strong financial results, innovative technology advancements, and strategic partnerships. While challenges remain, particularly in navigating market dynamics in China, the forecast for Q4 and 2024 appears promising, suggesting a robust demand environment moving forward.

Cadence Design Systems Earnings History

Earnings Calendar

FAQ

When is the earnings report for CDNS?
Cadence Design Systems (CDNS) has scheduled its earnings report for Feb 18, 2025 after the markets close.

What is the CDNS price-to-earnings (P/E) ratio?
CDNS P/E ratio as of Feb 13, 2025 (TTM) is 77.03.

What is the CDNS EPS forecast?
The forecasted EPS (Earnings Per Share) for Cadence Design Systems (CDNS) for the first fiscal quarter 2024 is $1.82.

What are Cadence Design Systems's retained earnings?
On its balance sheet, Cadence Design Systems reported retained earnings of $1.22 billion for the latest quarter ending Sep 30, 2024.

What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.

Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.

What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
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ABOUT CADENCE DESIGN SYSTEMS
Cadence Design Systems
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform ...
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