Cadence Design Systems (Nasdaq: CDNS) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cadence Design Systems beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.

Gross margins dropped, operating margins expanded, and net margins grew.

Revenue details
Cadence Design Systems reported revenue of $308.0 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $300.5 million. Sales were 24% higher than the prior-year quarter's $249.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.17. The seven earnings estimates compiled by S&P Capital IQ predicted $0.15 per share on the same basis. GAAP EPS were $0.04 for Q4 compared to -$0.14 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 84.2%, 20 basis points worse than the prior-year quarter. Operating margin was 14.9%, 1,360 basis points better than the prior-year quarter. Net margin was 3.5%, 1,840 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $292.9 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $1.23 billion. The average EPS estimate is $0.64.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members out of 207 rating the stock outperform, and 43 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Cadence Design Systems a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cadence Design Systems is outperform, with an average price target of $12.25.

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