For the quarter ended December 2024, Cadence Design Systems (CDNS) reported revenue of $1.36 billion, up 26.9% over the same period last year. EPS came in at $1.88, compared to $1.38 in the year-ago quarter.

The reported revenue represents a surprise of +0.60% over the Zacks Consensus Estimate of $1.35 billion. With the consensus EPS estimate being $1.82, the EPS surprise was +3.30%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue Mix by Product Group - System Design and Analysis: 19% compared to the 14.6% average estimate based on five analysts.
• Revenue Mix by Product Group - IP: 13% compared to the 14.1% average estimate based on five analysts.
• Order Backlog: $6.80 billion versus $6.14 billion estimated by two analysts on average.
• Revenue- Product and maintenance: $1.24 billion versus the five-analyst average estimate of $1.23 billion. The reported number represents a year-over-year change of +26.2%.
• Revenue- Services: $116.69 million compared to the $113.24 million average estimate based on five analysts. The reported number represents a change of +34.7% year over year.

View all Key Company Metrics for Cadence here>>>

Shares of Cadence have returned -3.4% over the past month versus the Zacks S&P 500 composite's +4.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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