Quarterly results are a good time to check a company’s progress, especially compared to peers in the same sector. Today we look at Cadence Design Systems (NASDAQ:CDNS) and the best and worst performers in the design software industry.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse may still be more of a buzzword than a real thing, the demand for the tools to create these experiences is real, whether it’s games, 3D tours or interactive movies.
The six design software stocks we track reported a very strong second quarter. As a group, revenues exceeded analyst consensus expectations by 3.8%, while revenue expectations for the next quarter were in line.
In light of this news, the companies’ share prices have remained stable as they have risen an average of 3.9% since the last earnings results.
For more than 35 years, Cadence Design Systems (NASDAQ:CDNS) has been providing the chips behind everything from smartphones to AI accelerators, providing essential computational software, hardware and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Cadence Design Systems reported revenue of $1.28 billion, up 20.2% year over year. This print exceeded analyst expectations by 1.8%. Overall, it was a very strong quarter for the company, with an impressive return to analyst EBITDA estimates and a solid improvement in analyst expectations.
“Cadence delivered an exceptional second quarter, with 20% year-over-year revenue growth and stronger-than-expected bookings, highlighting the strategic relevance of our AI-driven portfolio and the depth of our customer relationships,” said Anirudh Devgan, president and CEO.
Cadence Design Systems Total revenue
The market has likely priced in the results and the stock is flat since reporting. It is currently trading at $332.
We think Cadence Design Systems is a good company, but is it a buy today? Read our full report here, it’s free for active Edge members.
PTC (NASDAQ:PTC), originally known as Parametric Technology Corporation until its rebranding in 2013, provides software that enables manufacturers to design, develop and maintain physical products through digital solutions for CAD, PLM, ALM and SLM.
PTC reported revenue of $643.9 million, up 24.2% year over year, and exceeded analyst expectations by 10.4%. The company had an exceptional quarter, with next quarter earnings per share expectations exceeding analyst expectations and an impressive improvement in analyst EBITDA estimates.
PTC total turnover
PTC delivered the biggest earnings forecast from analysts, the fastest revenue growth and the highest full-year forecast increase among its peers. The market seems pleased with the results, as the stock is up 3.4% since reporting. It is currently trading at $210.12.
Is Now the Time to Buy PTC? See our full analysis of the revenue results here. This is free for active Edge members.
Originally named after Adobe Creek, which stood behind co-founder John Warnock’s home, Adobe (NASDAQ:ADBE) develops software products used for digital content creation, document management and marketing solutions across desktop, mobile and cloud platforms.
Adobe reported revenue of $5.99 billion, up 10.7% year over year, beating analyst expectations by 1.4%. It may have had the worst quarter among its peers, but its results were still good, as it also delivered an impressive gain in analyst estimates and a solid gain in analyst EBITDA estimates.
Adobe had the weakest performance compared to analyst estimates in the group. Interestingly, the stock is up 1.7% since the results and is currently trading at $356.80.
Read our full analysis of Adobe’s results here.
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for the architecture, engineering, construction, manufacturing and entertainment industries to design, simulate and visualize projects.
Autodesk reported revenue of $1.76 billion, up 17.1% year over year. This print exceeded analyst expectations by 2.3%. Overall, it was an exceptional quarter as it also saw a solid increase in analyst expectations and an impressive increase in analyst EBITDA estimates.
Autodesk had the weakest full-year guidance update among its peers. The stock is up 7.5% since reporting and is currently trading at $310.50.
Read our full, actionable report on Autodesk here. It’s free for active Edge members.
With a mission to build software for the people who build the world, Procore Technologies (NYSE:PCOR) provides cloud-based software that allows owners, contractors and other stakeholders to collaborate and manage construction projects from any device.
Procore Technologies reported revenue of $323.9 million, up 13.9% year over year. This result exceeded analyst expectations by 3.9%. It was a strong quarter as it also delivered an impressive return to analyst EBITDA estimates and a solid improvement to analyst annual recurring revenue estimates.
The company added 195 customers, reaching a total of 17,501. The stock is up 4.7% since reporting and is currently trading at $74.66.
Read our full, actionable report on Procore Technologies here. It’s free for active Edge members.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has fallen from its frothy post-pandemic levels. Overall price growth for goods and services has been trending toward the Fed’s 2% target lately, which is good news. The higher interest rates that combated inflation also did not slow economic activity enough to catalyze a recession. A soft landing so far. This, combined with recent interest rate cuts (half a percent in September 2024 and a quarter of a percent in November 2024) has led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the US presidential election in early November, sending major indices to record highs in the week after the election. Still, debates remain about the health of the economy and the impact of potential rate cuts and corporate tax cuts, leaving a lot of uncertainty around 2025.
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