Cadence Design Systems set to report strong Q4 earnings with revenue and earnings growth

From Nasdaq: 2025-02-17 15:00:00

Cadence Design Systems, Inc (CDNS) is set to report fourth-quarter 2024 results on Feb. 18. The Zacks Consensus Estimate for earnings is $1.82 per share, a 31.9% increase from last year. Revenue estimate is $1.35 billion, up 26.1%. CDNS expects revenues between $1.325-$1.365 billion and non-GAAP EPS of $1.78-$1.84 for Q4.

The company has a history of beating earnings estimates with an average of 6.1% in the past four quarters. However, CDNS stock has only gained 1.7% in the past year compared to the industry’s 7.9% growth. CDNS faces competition in the EDA space, impacting pricing power and margins.

CDNS’s Q4 results are expected to be strong due to robust design activity in data centers and automotive sectors. Sales of Cadence.AI portfolio tripled year over year. Revenues from System Design and Analysis are estimated to grow by 49.9%. Core EDA business likely benefited from demand for new hardware systems and Virtuoso Studio.

Earnings Whisper does not predict a beat for CDNS this quarter due to a Zacks Rank #4 and an Earnings ESP of +3.05%. Other companies like Freshpet, Inc. (FRPT), Savers Value Village, Inc. (SVV), and Sprouts Farmers Market, Inc. (SFM) are expected to post earnings beats based on their current rankings and estimates. FRPT, SVV, and SFM are scheduled to report earnings on Feb. 20.

For more detailed information and stock analysis reports on Cadence Design Systems, Inc (CDNS), Freshpet, Inc. (FRPT), Savers Value Village, Inc. (SVV), and Sprouts Farmers Market, Inc. (SFM), visit Zacks.com. Stay updated with the latest stock recommendations and analysis from Zacks Investment Research.



Read more at Nasdaq: Cadence Set to Release Q4 Earnings: Here’s What Investors Should Know