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Factors to Note Ahead of Cadence (CDNS) Q4 Earnings Release
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Cadence Design Systems Inc. (CDNS - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 22.
For the fourth quarter, Cadence expects total revenues in the range of $745-$765 million. The Zacks Consensus Estimate for revenues is currently pegged at $758 million, suggesting a 0.3% year-over-year decline.
Management projects non-GAAP earnings in the range of 76-80 cents per share. The consensus mark for earnings has been steady at 78 cents in the past 30 days, indicating a decline of 6% from the prior-year quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of Cadence have gained 4.6% in the past year compared with the industry’s rally of 15.3%.
Cadence Design Systems, Inc. Price and EPS Surprise
Cadence’s fourth-quarter performance is likely to have gained from a strong pipeline of its digital & signoff, custom & analog and IP solutions as well as an improving backlog. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications.
The introduction of new products like Helium Virtual and Hybrid Studio, Midas Safety Platform and Allegro X along with a strong uptake of the company’s other solutions like Clarity 3D Transient Solver, Sigrity-X, Xcelium Logic, Spectre X Simulator, Smart JasperGold and Tensilica Vision Q7 is likely to have driven fourth-quarter performance.
The company’s Palladium Z2 and the Protium X2 systems are already being deployed by the likes of NVIDIA and Advanced Micro Devices for validating system-on-chip (“SoC”) and GPU designs. Cadence's Palladium Z2 and Protium X2 solutions offer two times more capacity and 1.5 times improved performance than the prior generation — Palladium Z1 and Protium X1.
Acceleration in chip design activity along with increasing system design complexity is expected to have boosted demand for Cadence’s system design and verification solutions among semiconductor companies in the to-be-reported quarter.
Synergies from the Integrand and AWR buyouts along with the recent acquisitions of Pointwise and NUMECA are anticipated to have contributed to the company’s top line.
Supply chain constraints, component shortages and logistic bottlenecks witnessed globally stemming from the pandemic are likely to have affected the company’s performance.
Increasing expenses on product development amid stiff competition in the electronic design automation space might have impeded margin expansion in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Cadence has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have increased 25.7% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +0.4% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 37.7% in the past year.
Nielsen Holdings has an Earnings ESP of +1.84% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, declining 32.1% from the year-ago quarter’s levels. Shares of NLSN have decreased 20% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Cadence (CDNS) Q4 Earnings Release
Cadence Design Systems Inc. (CDNS - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 22.
For the fourth quarter, Cadence expects total revenues in the range of $745-$765 million. The Zacks Consensus Estimate for revenues is currently pegged at $758 million, suggesting a 0.3% year-over-year decline.
Management projects non-GAAP earnings in the range of 76-80 cents per share. The consensus mark for earnings has been steady at 78 cents in the past 30 days, indicating a decline of 6% from the prior-year quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of Cadence have gained 4.6% in the past year compared with the industry’s rally of 15.3%.
Cadence Design Systems, Inc. Price and EPS Surprise
Cadence Design Systems, Inc. price-eps-surprise | Cadence Design Systems, Inc. Quote
Factors Likely to Have Influenced Q4 Earnings
Cadence’s fourth-quarter performance is likely to have gained from a strong pipeline of its digital & signoff, custom & analog and IP solutions as well as an improving backlog. The company’s system design & analysis segment is likely to have benefited from increasing presence in domains like 5G, aerospace & defense, wireless and communications.
The introduction of new products like Helium Virtual and Hybrid Studio, Midas Safety Platform and Allegro X along with a strong uptake of the company’s other solutions like Clarity 3D Transient Solver, Sigrity-X, Xcelium Logic, Spectre X Simulator, Smart JasperGold and Tensilica Vision Q7 is likely to have driven fourth-quarter performance.
The company’s Palladium Z2 and the Protium X2 systems are already being deployed by the likes of NVIDIA and Advanced Micro Devices for validating system-on-chip (“SoC”) and GPU designs. Cadence's Palladium Z2 and Protium X2 solutions offer two times more capacity and 1.5 times improved performance than the prior generation — Palladium Z1 and Protium X1.
Acceleration in chip design activity along with increasing system design complexity is expected to have boosted demand for Cadence’s system design and verification solutions among semiconductor companies in the to-be-reported quarter.
Synergies from the Integrand and AWR buyouts along with the recent acquisitions of Pointwise and NUMECA are anticipated to have contributed to the company’s top line.
Supply chain constraints, component shortages and logistic bottlenecks witnessed globally stemming from the pandemic are likely to have affected the company’s performance.
Increasing expenses on product development amid stiff competition in the electronic design automation space might have impeded margin expansion in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Cadence has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler (ZS - Free Report) has an Earnings ESP of +2.1% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have increased 25.7% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +0.4% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 37.7% in the past year.
Nielsen Holdings has an Earnings ESP of +1.84% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, declining 32.1% from the year-ago quarter’s levels. Shares of NLSN have decreased 20% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.