Cadence Design Systems, Inc. (CDNS)
Cadence Design Systems, Inc. (CDNS) 20th Annual Needham Technology, Media, & Consumer Conference (Transcript)
Cadence Design Systems, Inc. (NASDAQ:CDNS ) 20th Annual Needham Technology, Media, & Consumer Conference May 12, 2025 1:30 PM ET Company Participants Nimish Modi - Senior Vice President & General Manager, Strategy and New Ventures Richard Gu - Vice President of Investor Relations Conference Call Participants Charles Shi - Needham & Co Charles Shi Hi, everyone. Welcome to join us at the 20th Annual Needham Technology, Media and Consumer Conference.
Why Cadence Design Systems Rallied 17.1% in April
Shares of semiconductor software design firm Cadence Design Systems (CDNS 0.75%) rallied 17.1%, according to data from S&P Global Market Intelligence. Cadence makes the electronic design automation software that chipmakers use to design chips. In addition, Cadence also has two other smaller but very high-growth segments in chip IP blocks, which chip designers can easily incorporate into their own designs, as well as overall system design and analysis software. While there was a lot of concern for tech stocks and specifically semiconductor stocks following April 2 "Liberation Day," Cadence reported strong Q1 earnings toward the end of the month and raised its full-year guidance. Moreover, management said it wasn't seeing any tariff-related change in customer behavior three weeks after April 2. In the first quarter, Cadence reported revenue growth of 23.1% to $1.24 billion, meeting expectations, and adjusted non-GAAP (adjusted) earnings per share grew 34.2% to $1.57, coming in ahead of expectations. However, perhaps more important was that Cadence actually increased its revenue guidance for the full year to 12% growth at the midpoint, and $6.78 in adjusted EPS at the midpoint. Coming off of April 2, many had feared the worst, especially for chip companies. However, CEO Anirudh Devgan noted Cadence hadn't noticed any change in its customers' behavior, saying: More and more companies are designing their own proprietary chips for various use cases to drive differentiation, whether it's the cloud providers or even new AI start-ups designing their own AI accelerators, or existing chip giants such as smartphone chipmaker Qualcomm trying to penetrate new verticals such as autos and PCs in order to diversify, for instance. Even though Cadence's customers operate in a cyclical industry, given that custom chipmaking is usually a major strategic goal and it can take years for new designs to come to fruition, the research and development behind custom chipmaking going to Cadence is unlikely to get cut, even in a bad economy. Given its lower-risk, double-digit growth outlook, it's no wonder Cadence now trades at over 45 times this year's adjusted earnings estimates. That's certainly not cheap, but it is perhaps a fitting valuation for a company that has delivered low to mid-teens growth and margin expansion every year for the past six years. In the age of AI, investors should probably expect great growth and margins for Cadence, and it should perform well over the long term. That being said, it may be hard for the stock to garner significant upside in the near-term, given its fairly full valuation.
Cadence Design Systems, Inc. (CDNS) Is a Trending Stock: Facts to Know Before Betting on It
Cadence (CDNS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Cadence Design's Q1: Backlog Capitulation
Cadence Design Systems reported strong Q1 FY25 earnings, with revenue growth over 20%, driven by Core EDA and robust IP business momentum. AI, chiplet-based designs, and foundry ecosystem expansions are key tailwinds, with significant partnerships like Nvidia and Intel bolstering growth prospects. Despite strong performance, the stock is rated Hold due to its current valuation at ~44x CY25 EPS estimates, suggesting limited upside potential.
Cadence's Q1 Earnings & Revenues Surpass Estimates, Surge Y/Y
CDNS reports better-than-expected first-quarter results on solid demand trends and upgrades revenue and EPS guidance for 2025.
Cadence Design Systems, Inc. (CDNS) Q1 2025 Earnings Call Transcript
Cadence Design Systems, Inc. (NASDAQ:CDNS ) Q1 2025 Earnings Conference Call April 28, 2025 5:00 PM ET Company Participants Richard Gu - VP of IR Anirudh Devgan - President and CEO John Wall - SVP and CFO Conference Call Participants Harlan Sur - JPMorgan Lee Simpson - Morgan Stanley Gary Mobley - Loop Capital Vivek Arya - Bank of America Securities Gianmarco Conti - Deutsche Bank Jay Vleeschhouwer - Griffin Securities Jason Celino - KeyBanc Capital Markets Joe Quatrochi - Wells Fargo Joe Vruwink - Baird Joshua Tilton - Wolfe Research Siti Panigrahi - Mizuho Nay Soe Naing - Berenberg Ruben Roy - Stifel Blair Abernethy - Rosenblatt Securities Operator Good afternoon. My name is Tina and I will be your conference operator today.
Cadence (CDNS) Reports Q1 Earnings: What Key Metrics Have to Say
Although the revenue and EPS for Cadence (CDNS) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Cadence Design Systems (CDNS) Beats Q1 Earnings and Revenue Estimates
Cadence Design Systems (CDNS) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.17 per share a year ago.
Cadence and TSMC Strengthen Partnership to Enhance AI & 3D-IC Designs
CDNS expands its collaboration with TSMC to accelerate time to silicon for advanced-node and 3D-IC technologies.
Cadence Set to Release Q1 Earnings: Here's What to Expect
CDNS' first-quarter performance is likely to have benefited from higher customer demand amid volatile global macroeconomic conditions.
Gear Up for Cadence (CDNS) Q1 Earnings: Wall Street Estimates for Key Metrics
Beyond analysts' top -and-bottom-line estimates for Cadence (CDNS), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
Wall Street Analysts Think Cadence (CDNS) Is a Good Investment: Is It?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
