Cadence (CADE) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - Cadence's stock has outperformed the S&P 500 composite, returning +15.3% over the past month compared to the index's +0.4% change [1] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [1] Financial Performance - Cadence reported revenue of $456.98 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate of $439.63 million by +3.95% [2] - The company experienced a year-over-year revenue decline of 1.9% [2] - Earnings per share (EPS) for the quarter was $0.69, surpassing the consensus estimate of $0.60 by +15.00% [2] Key Financial Metrics - Net Interest Margin was reported at 3.3%, slightly above the six-analyst average estimate of 3.2% [4] - Average Balance of Total Interest Earning Assets was $43.85 billion, below the estimated $44.23 billion [4] - Efficiency Ratio (fully tax equivalent) was 56.1%, better than the average estimate of 59.5% [4] - Net charge-offs to average loans remained at 0.3%, matching the average estimate [4] - Non-Performing Assets totaled $221.54 million, significantly lower than the average estimate of $290.93 million [4] - Tier 1 capital was reported at 12.3%, exceeding the average estimate of 12.1% [4] - Total capital was 14.2%, below the average estimate of 14.6% [4] - Non-Performing Loans amounted to $216.75 million, compared to the average estimate of $283.27 million [4] - Total noninterest income reached $100.66 million, surpassing the average estimate of $85.40 million [4] - Net Interest Income (FTE) was $356.96 million, slightly above the average estimate of $355.13 million [4] - Net Interest Income was reported at $356.32 million, exceeding the average estimate of $353.96 million [4] - Credit card, debit card, and merchant fees were $12.77 million, below the average estimate of $13.72 million [4]