Cadence Design Systems (NASDAQ: CDNS) Set to Report Q4 Earnings Tomorrow
Cadence Design Systems, a leading semiconductor design software provider, is set to report its earnings tomorrow afternoon. This comes after a weak quarter for the company, which saw underwhelming revenue guidance for the next quarter. However, analysts are expecting a turnaround this quarter, with revenue projected to grow by 17.9% year on year to $1.06 billion, in line with the company’s previous year-over-year increase. Adjusted earnings are expected to come in at $1.33 per share.
The majority of analysts covering Cadence have reconfirmed their estimates, indicating that they believe the business will stay the course heading into the earnings announcement. Over the past two years, the company has only missed Wall Street’s revenue estimates once and has consistently exceeded top-line expectations by an average of 2.4%.
Insights from Peers in the Vertical Software Segment
Looking at Cadence’s peers in the vertical software segment, both PTC (NASDAQ: PTC) and Doximity have already reported their Q4 earnings results, providing some insights into what we can expect. PTC delivered top-line growth of 18.1% year on year, beating analyst estimates by 2.3%, while Doximity reported revenues up 17.4% year on year, exceeding estimates by 6.1%. PTC’s stock remained flat following the announcement, while Doximity saw a decline of 10.1%.
Investors in the vertical software segment have shown positive sentiment, with stocks in the sector up an average of 8.2% over the past month. Cadence has performed even better, with its stock up 13.4% during the same period. Analysts have set a price target of $289.4 for Cadence, compared to its current share price of $314.7.
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Analyst comment
Neutral news. Analysts expect Cadence Design Systems to report a turnaround quarter with revenue projected to grow by 17.9% YoY. Majority of analysts reconfirm estimates. Peers PTC and Doximity beat estimates but saw mixed stock performance. Investors show positive sentiment with sector stocks up 8.2%.
