Cadence Design Systems (NAS: CDNS) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Cadence Design Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Cadence Design Systems notched revenue of $338.5 million. The eight analysts polled by S&P Capital IQ wanted to see revenue of $330.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $292.5 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 $0.21. The eight earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.21 for Q3 were 110% higher than the prior-year quarter's $0.10 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 84.9%, 190 basis points better than the prior-year quarter. Operating margin was 17.6%, 670 basis points better than the prior-year quarter. Net margin was 17.3%, 770 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $336.4 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $0.73.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 170 members out of 212 rating the stock outperform, and 42 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $14.44.
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The article Cadence Design Systems Beats on Both Top and Bottom Lines originally appeared on Fool.com.
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