Gear Up for Cadence (CDNS) Q1 Earnings: Wall Street Estimates for Key Metrics

Core Insights - Cadence Design Systems (CDNS) is expected to report quarterly earnings of $1.49 per share, a 27.4$1.24 billion, reflecting a 22.7% year-over-year growth [1] Earnings Estimates - Over the last 30 days, there have been no revisions in the consensus EPS estimate for the quarter, indicating stability in analysts' forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Product and maintenance' will reach $1.13 billion, a 23.9$105.39 million, indicating a 10.1% year-over-year growth [5] Revenue Mix by Product Group - The consensus estimate for 'Revenue Mix by Product Group - System Design and Analysis' is 15.3%, up from 12% in the same quarter last year [6] - 'Revenue Mix by Product Group - IP' is expected to be 12.1%, consistent with the previous year's figure of 12% [6] - 'Revenue Mix by Product Group - Custom IC Design and Simulation' is forecasted at 19.7%, down from 22% year-over-year [7] - 'Revenue Mix by Product Group - Functional Verification, including Emulation Hardware' is projected to be 25.4%, slightly up from 25% in the same quarter last year [7] - 'Revenue Mix by Product Group - Digital IC Design and Signoff' is estimated at 25.2%, down from 29% year-over-year [8] Stock Performance - Over the past month, Cadence shares have recorded a return of -4.1%, compared to the Zacks S&P 500 composite's -6.6% change [8] - Based on its Zacks Rank 4 (Sell), CDNS is expected to underperform the overall market in the upcoming period [8]