Will CDNS going to beat the earnings significantly?

Cadence Design Systems (CDNS) is poised to deliver solid earnings, as indicated by the consensus and estimates. Here's a detailed analysis:

1. Consensus Estimate: The Zacks Consensus Estimate for CDNS's EPS is $1.44 per share, representing a year-over-year change of +14.3%. This suggests that the company is expected to report a significant increase in earnings compared to the previous year.
2. Revenue Expectations: The estimated revenue for the quarter ending September 2024 is $1.18 billion, which is a 15.7% increase from the year-ago quarter. This indicates a strong revenue growth trajectory for the company.
3. Historical Performance: In the last quarter, CDNS reported EPS of $1.28, surpassing the consensus estimate of $1.22 by $0.06. This recent beat on expectations lends credibility to the notion that CDNS could continue to exceed estimates.
4. Analyst Ratings and Price Targets: The analyst consensus on CDNS stock is moderately optimistic, with an overall "Moderate Buy" rating. This suggests that analysts are generally positive on the stock, which could be a good indicator for future earnings performance.
5. Market Performance and Sentiment: CDNS' stock has shown resilience, with a year-to-date gain of 3.6%, despite underperforming the broader S&P 500 Index and the iShares Expanded Tech-Software Sector ETF. This market performance could reflect investor confidence in the company's future earnings potential.

In conclusion, given the strong revenue expectations, recent performance above estimates, and positive analyst sentiment, CDNS is likely to beat earnings significantly. Investors should consider these factors when evaluating CDNS's earnings potential for the upcoming report.