Cadence Design Systems (CDNS) Beats Q4 Earnings and Revenue Estimates

Core Insights - Cadence Design Systems (CDNS) reported quarterly earnings of $1.99 per share, exceeding the Zacks Consensus Estimate of $1.90 per share and up from $1.88 per share a year ago [1] - The earnings surprise for this quarter was +4.57%, following a previous surprise of +7.82% when earnings were $1.93 per share against an expectation of $1.79 per share [2] - The company achieved revenues of $1.44 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.12% and increasing from $1.36 billion year-over-year [3] Earnings Performance - Cadence has consistently surpassed consensus EPS estimates for the last four quarters [2] - The company has also topped consensus revenue estimates four times over the last four quarters [3] Stock Performance and Outlook - Cadence shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has only declined by 0.1% [4] - The current Zacks Rank for Cadence is 4 (Sell), indicating expectations of underperformance in the near future [7] Future Earnings Expectations - The consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $1.38 billion, and for the current fiscal year, it is $8.03 on revenues of $5.95 billion [8] - The estimate revisions trend for Cadence was unfavorable prior to the earnings release, but this may change following the recent results [7] Industry Context - The Computer - Software industry, to which Cadence belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Another company in the same industry, Oracle, is expected to report quarterly earnings of $1.70 per share, reflecting a year-over-year increase of +15.7% [10]