What Analyst Projections for Key Metrics Reveal About Cadence (CDNS) Q2 Earnings

Core Insights - Wall Street analysts forecast that Cadence Design Systems (CDNS) will report quarterly earnings of $1.57 per share, reflecting a year-over-year increase of 22.7% [1] - Anticipated revenues for the quarter are projected to be $1.26 billion, which represents an 18.7% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating that analysts have not revised their initial projections [2] - Changes in earnings estimates are crucial for predicting potential investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts expect 'Revenue- Product and maintenance' to reach $1.15 billion, indicating a 19.6% increase from the year-ago quarter [4] - The estimated 'Revenue- Services' is projected at $112.09 million, reflecting an 11.8% increase from the prior-year quarter [5] - Analysts project 'Order Backlog' to reach $6.13 billion, compared to $6.00 billion from the previous year [5] Stock Performance - Shares of Cadence have shown a return of +7.7% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [5] - Despite recent performance, CDNS holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near future [5]