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For the quarter ended March 2025, Cadence Design Systems (CDNS) reported revenue of $1.24 billion, up 23.1% over the same period last year. EPS came in at $1.57, compared to $1.17 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.24 billion, representing a surprise of +0.34%. The company delivered an EPS surprise of +5.37%, with the consensus EPS estimate being $1.49.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
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Revenue Mix by Product Group - System Design and Analysis: 15% versus the five-analyst average estimate of 15.3%.
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Revenue Mix by Product Group - IP: 14% versus the five-analyst average estimate of 12.1%.
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Revenue Mix by Product Group - Core EDA: 71 3 compared to the 73.76 3 average estimate based on three analysts.
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Order Backlog: $6.40 billion compared to the $6.45 billion average estimate based on two analysts.
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Revenue- Product and maintenance: $1.11 billion versus $1.13 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +21.6% change.
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Revenue- Services: $131.52 million versus the five-analyst average estimate of $105.39 million. The reported number represents a year-over-year change of +37.4%.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have returned +12.8% over the past month versus the Zacks S&P 500 composite's -4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).