Electronic design automation company Cadence Design Systems (NASDAQ: CDNS) will be announcing earnings results this Monday after market close. Here’s what to expect.

Cadence Design Systems beat analysts’ revenue expectations last quarter, reporting revenues of $1.44 billion, up 6.2% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Cadence Design Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Cadence Design Systems’s revenue to grow 16.4% year on year, slowing from the 23.1% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cadence Design Systems rarely misses Wall Street’s revenue estimates.

Looking at Cadence Design Systems’s peers in the vertical software segment, only Adobe has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 12%. The stock was down 7.6% on the results.

There has been positive sentiment among investors in the vertical software segment, with share prices up 8.1% on average over the last month. Cadence Design Systems is up 22.5% during the same time and is heading into earnings with an average analyst price target of $371.53 (compared to the current share price of $332.95).

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