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
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.36B
26.89%
11.56%
Gross Margin
83.10%
-7.45%
-3.18%
Operating Margin
33.71%
6.64%
9.09%
Net Margin
25.09%
-17.22%
28.08%
EPS
1.24
4.20%
42.53%
No Data Available
CDNS Earnings Analysis
Cadence Design Systems Inc Corporation (CDNS.O) Earnings Conference Call
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
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CDNS Earning Call Sentiment
Cadence Design Systems, Inc. (NASDAQ:CDNS) Q4 2024 Earnings Call Transcript
CDNS.O
2.38%Positive
The earnings call summary indicates strong financial performance with a 13.5% revenue growth and improved margins. Cadence's strategic partnerships and AI-driven product demand are positive catalysts. The Q&A section reveals some concerns about China, but overall guidance is optimistic, with expected strong demand and share repurchases. Despite some uncertainties, the positive financial outlook and strategic initiatives suggest a positive stock price movement.
