Why Cadence (CADE) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Cadence (CADE) is positioned well to continue its trend of beating earnings estimates, particularly in the upcoming quarterly report, supported by a strong history of earnings surprises [1]. Earnings Performance - In the last reported quarter, Cadence achieved earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, resulting in a surprise of 5.80% [2]. - In the previous quarter, the company was expected to report earnings of $0.64 per share but delivered $0.71 per share, leading to a surprise of 10.94% [2]. Earnings Estimates and Predictions - Estimates for Cadence have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +5.40%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat in the upcoming report, expected on October 20, 2025 [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise, meaning that out of 10 such stocks, approximately seven could beat consensus estimates [6].