Cadence Design Systems Posts Impressive Earnings with $1.29 Non-GAAP EPS, Revenues of $1.02B
April 26, 2023
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Cadence Design Systems ($NASDAQ:CDNS), Inc. is a publicly held electronic design automation company that serves the global electronics industry. These figures exceeded expectations, with Non-GAAP EPS surpassing estimates by $0.04 and revenues exceeding estimates by $10M. The strong performance of the company was attributed to increased sales from regular customers in the semiconductor, automotive, and artificial intelligence markets.
Overall, Cadence Design Systems had a very successful quarter and is poised to continue its strong performance in the upcoming quarters. The company’s strong fundamentals point to a bright future for the business and its shareholders alike.
Stock Price
On Monday, CADENCE DESIGN SYSTEMS stock opened at $212.8 and closed at $213.0, with the company posting impressive earnings of $1.29 Non-GAAP EPS and revenues of $1.02B. This impressive performance is a testament to the company’s success in continuing to deliver quality products and services to its customers. The news has been received positively by investors, with the company’s stock price reaching new heights following the announcement.
The strong financial performance was attributed to an increase in customer demand for their products and services, along with a lower tax rate which helped to offset any potential losses. This strong performance is likely to continue as the company continues to invest in new product development and services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CDNS. More…
| Total Revenues | Net Income | Net Margin |
| 3.68k | 855.42 | 23.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CDNS. More…
| Operations | Investing | Financing |
| 1.17k | -754.43 | -593.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CDNS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.17k | 2.23k | 10.76 |
Key Ratios Snapshot
Some of the financial key ratios for CDNS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.7% | 28.2% | 29.5% |
| FCF Margin | ROE | ROA |
| 28.3% | 23.9% | 13.1% |
Analysis
At GoodWhale, we have conducted an analysis of the financial health of CADENCE DESIGN SYSTEMS. Our star chart shows that the company has a high health score of 10/10 when it comes to its cash flows and debt, indicating that it is well able to pay off debt and fund future operations. We have classified CADENCE DESIGN SYSTEMS as a ‘gorilla’, a type of company we conclude has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors looking for a strong growth position with medium assets and weak dividend yields may find CADENCE DESIGN SYSTEMS an attractive investment opportunity. We view this as a safe and stable business that can generate returns for investors over the long term. More…
Peers
Cadence Design Systems Inc is one of the leading electronic design automation software providers. The company offers a comprehensive suite of tools, IP and services that enable global electronic system and semiconductor companies to create innovative products that improve the quality of life.
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Summary
Cadence Design Systems has reported strong financial performance in its latest quarter, with non-GAAP earnings per share of $1.29, beating analyst estimates by $0.04. Revenue was also higher than expected, coming in at $1.02 billion, a $10 million beat. Investors should note that Cadence Design Systems is in a strong position going forward, due to its diversified product offerings and its presence in multiple industries. The company’s strong balance sheet should also appeal to investors, as it provides a solid foundation for further growth.
Additionally, recent acquisitions have enabled the company to expand its reach and capabilities in a wide range of markets. Investors should continue to monitor Cadence Design Systems for any further developments which may impact the company’s performance.
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