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 +1.49% change in stock price 10 days leading up to the earnings, and a -1.13% change 10 days following the report. On the earnings day itself, the stock moves by +0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
CDNS Key Earning Data
CDNS Earnings Analysis
Positive
Earnings Per Share Beat: Cadence Design Systems, Inc. reported an EPS of $1.88, exceeding expectations of $1.82.
Revenue and Margin Performance: The company achieved 13.5% revenue growth and a 42.5% non-GAAP operating margin for the year.
Record Backlog Achievement: Cadence exited 2024 with a record backlog of $6.8 billion, indicating strong demand for its AI-driven portfolio.
AI Supercycle Impact: The AI supercycle is driving increased compute demand and semiconductor innovation, with Cadence actively engaging in AI infrastructure build-out.
Strategic Partnerships Expansion: Cadence advanced partnerships with major companies like NVIDIA and Qualcomm, enhancing its EDA and system software solutions.
Product Adoption Momentum: The Cadence.ai portfolio is gaining momentum, with products like Cadence Cerebrus and Allegro X AI showing significant adoption and productivity benefits.
AI-Driven Growth in Design: The System Design & Analysis business grew over 40% in 2024, driven by AI-driven optimization across multiple verticals.
IP Business Growth: The IP business grew 28% year-over-year in Q4, with strong demand for AI HPC protocols and new acquisitions like Secure-IC.
Customer Growth in Hardware: Cadence's hardware family added over 30 new customers and nearly 200 repeat customers in 2024, reflecting strong demand from AI and hyperscale customers.
Projected Revenue Growth: The company expects revenue in 2025 to be in the range of $5.14 billion to $5.22 billion, indicating continued growth.
Negative
AI Supercycle Demand Challenges: Cadence's revenue growth of 13.5% in 2024 may not be sufficient to meet the increasing demands of the AI supercycle, which is expected to drive exponential growth in the semiconductor industry.
Backlog Growth Concerns: Despite a record backlog of $6.8 billion, there are concerns about the sustainability of this growth, especially with the assumption that China revenue will remain flat year-over-year in 2025.
Operating Margin Discrepancy: The GAAP operating margin for the year was 29.1%, which is lower than the non-GAAP operating margin of 42.5%, indicating potential discrepancies in financial reporting that could raise concerns among investors.
Debt Risk Concerns: The company has a significant amount of debt, with $2.500 billion outstanding, which could pose risks if cash flow does not continue to meet expectations.
Operating Margin Decline Forecast: The guidance for 2025 indicates a potential decline in operating margins, with GAAP operating margin expected to be in the range of 30.3% to 31.3%, which is lower than the previous year's performance.
CDNS FAQs
How does CDNS typically perform around its earnings report dates?
CDNS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +1.49% change leading up to the report and a -1.13% change in the 10 days following the release.
Is Cadence Design Systems Inc (CDNS) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CDNS Earning Call Sentiment
Cadence Design Systems, Inc. (NASDAQ:CDNS) Q4 2024 Earnings Call Transcript
CDNS.O
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