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Interpreting Cadence (CDNS) International Revenue Trends
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Have you evaluated the performance of Cadence Design Systems' (CDNS - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of hardware and software products for validating chip designs, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing CDNS' performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $1.06 billion, showing rise of 8.6%. We will now explore the breakdown of CDNS' overseas revenue to assess the impact of its international operations.
A Closer Look at CDNS' Revenue Streams Abroad
Of the total revenue, $63.59 million came from Japan during the last fiscal quarter, accounting for 6.0%. This represented a surprise of +10.22% as analysts had expected the region to contribute $57.7 million to the total revenue. In comparison, the region contributed $51.42 million, or 5.1%, and $57.2 million, or 5.9%, to total revenue in the previous and year-ago quarters, respectively.
Total Asia accounted for 30.7% of the company's total revenue during the quarter, translating to $325.74 million. Revenues from this region represented a surprise of -9.86%, with Wall Street analysts collectively expecting $361.36 million. When compared to the preceding quarter and the same quarter in the previous year, Total Asia contributed $325.76 million (32.3%) and $351.01 million (35.9%) to the total revenue, respectively.
Europe, Middle East and Africa generated $152.52 million in revenues for the company in the last quarter, constituting 14.4% of the total. This represented a surprise of -11.16% compared to the $171.67 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $169.06 million (16.8%), and in the year-ago quarter, it contributed $166.8 million (17.1%) to the total revenue.
Prospective Revenues in International Markets
It is projected by analysts on Wall Street that Cadence will post revenues of $1.18 billion for the ongoing fiscal quarter, an increase of 15.5% from the year-ago quarter. The expected contributions from Japan, Total Asia and Europe, Middle East and Africa to this revenue are 5.5%, 34.9% and 16.6%, translating into $65.4 million, $411.81 million and $195.62 million, respectively.
For the full year, the company is projected to achieve a total revenue of $4.61 billion, which signifies a rise of 12.6% from the last year. The share of this revenue from various regions is expected to be: Japan at 5.3% ($245.32 million), Total Asia at 33.5% ($1.54 billion) and Europe, Middle East and Africa at 16.3% ($752.78 million).
Closing Remarks
Cadence's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Assessing Cadence's Stock Price Movement in Recent Times
Over the past month, the stock has seen a decline of 13.9% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.3%. The Zacks Computer and Technology sector, Cadence's industry group, has descended 2.4% over the identical span. In the past three months, there's been a decline of 3% in the company's stock price, against a rise of 7.5% in the S&P 500 index. The broader sector has increased by 10.9% during this interval.
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Interpreting Cadence (CDNS) International Revenue Trends
Have you evaluated the performance of Cadence Design Systems' (CDNS - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of hardware and software products for validating chip designs, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing CDNS' performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $1.06 billion, showing rise of 8.6%. We will now explore the breakdown of CDNS' overseas revenue to assess the impact of its international operations.
A Closer Look at CDNS' Revenue Streams Abroad
Of the total revenue, $63.59 million came from Japan during the last fiscal quarter, accounting for 6.0%. This represented a surprise of +10.22% as analysts had expected the region to contribute $57.7 million to the total revenue. In comparison, the region contributed $51.42 million, or 5.1%, and $57.2 million, or 5.9%, to total revenue in the previous and year-ago quarters, respectively.
Total Asia accounted for 30.7% of the company's total revenue during the quarter, translating to $325.74 million. Revenues from this region represented a surprise of -9.86%, with Wall Street analysts collectively expecting $361.36 million. When compared to the preceding quarter and the same quarter in the previous year, Total Asia contributed $325.76 million (32.3%) and $351.01 million (35.9%) to the total revenue, respectively.
Europe, Middle East and Africa generated $152.52 million in revenues for the company in the last quarter, constituting 14.4% of the total. This represented a surprise of -11.16% compared to the $171.67 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $169.06 million (16.8%), and in the year-ago quarter, it contributed $166.8 million (17.1%) to the total revenue.
Prospective Revenues in International Markets
It is projected by analysts on Wall Street that Cadence will post revenues of $1.18 billion for the ongoing fiscal quarter, an increase of 15.5% from the year-ago quarter. The expected contributions from Japan, Total Asia and Europe, Middle East and Africa to this revenue are 5.5%, 34.9% and 16.6%, translating into $65.4 million, $411.81 million and $195.62 million, respectively.
For the full year, the company is projected to achieve a total revenue of $4.61 billion, which signifies a rise of 12.6% from the last year. The share of this revenue from various regions is expected to be: Japan at 5.3% ($245.32 million), Total Asia at 33.5% ($1.54 billion) and Europe, Middle East and Africa at 16.3% ($752.78 million).
Closing Remarks
Cadence's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, Cadence holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Cadence's Stock Price Movement in Recent Times
Over the past month, the stock has seen a decline of 13.9% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.3%. The Zacks Computer and Technology sector, Cadence's industry group, has descended 2.4% over the identical span. In the past three months, there's been a decline of 3% in the company's stock price, against a rise of 7.5% in the S&P 500 index. The broader sector has increased by 10.9% during this interval.