Semiconductor design software provider Cadence Design Systems (NASDAQ:CDNS) will be reporting results tomorrow after market close. Here's what you need to know.
Cadence met analysts' revenue expectations last quarter, reporting revenues of $1.01 billion, down 1.2% year on year. It was a weak quarter for the company, with a miss of analysts' billings estimates.
Is Cadence a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Cadence's revenue to grow 6.8% year on year to $1.04 billion, slowing from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.23 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cadence has missed Wall Street's revenue estimates twice over the last two years.
Looking at Cadence's peers in the vertical software segment, only Adobe has reported results so far. It met analysts' revenue estimates, delivering year-on-year sales growth of 10.2%. The stock traded up 14.5% on the results.
Read our full analysis of Adobe's earnings results here.There has been positive sentiment among investors in the vertical software segment, with share prices up 5% on average over the last month. Cadence is down 9.5% during the same time and is heading into earnings with an average analyst price target of $323.3 (compared to the current share price of $279.8).
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