Cadence Design Systems
The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Cadence Design Systems beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins grew across the board.
Cadence Design Systems reported revenue of $345.6 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $341.1 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $308.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The eight earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $1.10 for Q4 were much higher than the prior-year quarter's $0.04 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 87.3%, 310 basis points better than the prior-year quarter. Operating margin was 16.3%, 140 basis points better than the prior-year quarter. Net margin was 90.8%, 8,730 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $342.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $0.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 169 members out of 212 rating the stock outperform, and 43 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Cadence Design Systems a green thumbs-up, and four 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 $15.06.
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