Cadence Design Systems (CDNS) Q1 Earnings Top Estimates

Company Performance - Cadence Design Systems (CDNS) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, but down from $1.29 per share a year ago, representing an earnings surprise of 3.54% [1] - The company posted revenues of $1.01 billion for the quarter ended March 2024, missing the Zacks Consensus Estimate by 0.49%, compared to $1.02 billion in the same quarter last year [1] - Over the last four quarters, Cadence has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $1.11 billion, and for the current fiscal year, it is $5.93 on revenues of $4.59 billion [4] - The estimate revisions trend for Cadence is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Computer - Software industry, to which Cadence belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Manhattan Associates (MANH), another company in the same industry, is expected to report quarterly earnings of $0.87 per share, reflecting a year-over-year change of +8.8%, with revenues anticipated to be $243.32 million, up 10.1% from the previous year [5][6]