CDNS Earnings Prediction
The chart below shows how CDNS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CDNS sees a +1.74% change in stock price 10 days leading up to the earnings, and a -0.09% change 10 days following the report. On the earnings day itself, the stock moves by +0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
CDNS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.22B
18.81%
14.60%
Gross Margin
85.83%
-3.39%
-0.48%
Operating Margin
30.90%
3.83%
10.28%
Net Margin
19.59%
-21.20%
-9.47%
EPS
0.87
-6.45%
3.57%
No Data Available
CDNS Earnings Analysis
Cadence Design Systems Corporation (CDNS.O) Earnings Conference Call
Positive
Exceptional Q3 Revenue: Cadence delivered exceptional results for the third quarter of 2024 with total revenue of over $1.215 billion.
Year-over-Year Growth: We achieved 19% year-over-year growth.
Recurring Revenue Growth Q3: Our Q3 recurring revenue growth returned to low teens on a year-over-year basis.
Operating Margin Comparison: GAAP operating margin was 28.8% and non-GAAP operating margin was 44.8%.
Earnings Per Share Comparison: GAAP EPS was $0.87 with non-GAAP EPS of $1.64.
Negative
Q3 Revenue Growth Slowdown: Q3 revenue growth returned to low teens on a year-over-year basis, indicating a slowdown compared to previous quarters.
Core EDA Revenue Challenges: Core EDA revenue growth slipped below 10%, suggesting challenges in maintaining momentum in this segment.
China Revenue Decline: The company experienced a decline in China revenue, which is expected to be lower this year than last year, marking only the third occurrence in the last 25 years.
Liquidity Concerns Indicated: Operating cash flow was $410 million, indicating potential liquidity concerns as the company navigates its financial obligations.
Debt Leverage Position: The principal value of debt outstanding was $2.850 billion, highlighting a significant leverage position that may impact future financial flexibility.
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CDNS Earning Call Sentiment
Cadence Design Systems, Inc. (CDNS) Q3 2024 Earnings Call Transcript
1.0x
00:00
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CDNS.O
-9.57%Positive
The earnings call highlights strong financial performance with a 19% YoY revenue growth and robust non-GAAP operating margins. Positive sentiment is reinforced by strategic partnerships with NVIDIA, Samsung, and TSMC, and a successful acquisition. Despite regulatory and competitive pressures, optimistic guidance and a strong Q4 pipeline suggest potential growth. The $150 million share repurchase plan is a positive signal to investors. The Q&A section provides confidence in sustained growth, especially with AI integration. Despite some uncertainties, the overall sentiment is positive, indicating a likely stock price increase of 2% to 8%.