Cadence Design Systems (Nasdaq: CDNS ) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Cadence Design Systems beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Cadence Design Systems logged revenue of $315.8 million. The eight analysts polled by S&P Capital IQ looked for revenue of $309.8 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $266.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.17. The nine earnings estimates compiled by S&P Capital IQ forecast $0.15 per share on the same basis. GAAP EPS of $0.11 for Q1 were 450% higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 85.2%, 220 basis points better than the prior-year quarter. Operating margin was 14.3%, 770 basis points better than the prior-year quarter. Net margin was 9.8%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $313.5 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $0.67.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 171 members out of 215 rating the stock outperform, and 44 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Cadence Design Systems a green thumbs-up, and seven 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 $12.92.
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