Semiconductor design software provider Cadence Design Systems (NASDAQ:CDNS) will be reporting results today after the bell. Here's what investors should know.
Last quarter Cadence reported revenues of $899.9 million, up 16.4% year on year, beating analyst revenue expectations by 1.77%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but underwhelming guidance for the next year.
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This quarter analysts are expecting Cadence's revenue to grow 11.6% year on year to $1.01 billion, slowing down from the 22.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.64%.
With Cadence being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for vertical software stocks, but there here has been positive sentiment among investors in the software segment, with the stocks up on average 2.59% over the last month. Cadence is up 3.14% during the same time, and is heading into the earnings with analyst price target of $213.7, compared to share price of $211.72.
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The author has no position in any of the stocks mentioned.