Earnings Outlook For Cadence Design Systems

Cadence Design Systems CDNS unveils its next round of earnings this Monday, July 26. Get prepared with Benzinga's ultimate preview for Cadence Design Systems's Q2 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Cadence Design Systems modeled for quarterly EPS of $0.76 on revenue of $721.16 million. In the same quarter last year, Cadence Design Systems posted EPS of $0.66 on sales of $638.42 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 15.15% increase in the company's earnings. Revenue would be have grown 12.96% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Cadence Design Systems were trading at $143.02 as of July 22. Over the last 52-week period, shares are up 36.8%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cadence Design Systems is scheduled to hold the call at 17:00:00 ET and can be accessed here.