Cadence Design Systems
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.
New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does Cadence Design Systems fit in? What's the fortune-making change? Check out our free report: "The Two Words Bill Gates Doesn't Want You to Hear..." Click here for instant access to this free report.
- Add Cadence Design Systems to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.