Mentor Graphics Corp Earnings Cheat Sheet: Higher-Than-Expected Net Income

Mentor Graphics Corporation (NASDAQ:MENT) reported net income above Wall Street’s expectations for the third quarter. Mentor Graphics supplies electronic design automation systems and emulation systems used to automate the design, analysis, and testing of electronic hardware and embedded systems software.

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Mentor Graphics Earnings Cheat Sheet for the Third Quarter

Results: Net income for Mentor Graphics Corporation rose to $24.1 million (22 cents per share) vs. $15.3 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 57.8% from the year earlier quarter.

Revenue: Rose 4.8% to $250.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MENT beat the mean analyst estimate of 12 cents per share. It beat the average revenue estimate of $244.9 million.

Quoting Management: “Bookings were again a record, up over 20% from the previous third quarter record, and for the second consecutive year our book-to-bill through the third quarter is positive,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “This quarter saw the beginning of the strength we predicted in our Design to Silicon category for the second half, with bookings in the third quarter up year-on-year by over 55%, and by about 15% year to date. Looking forward, we expect the technical challenges of advanced nodes to drive significant opportunity for us.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 15 cents in the second quarter, by one cent in the first quarter, and by 9 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 13.7% to $213.7 million in the second quarter. The figure rose 27.4% in the first quarter from the year earlier and climbed 29.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 42 cents per share, down from 48 cents ninety days ago. For the fiscal year, the average estimate has moved down from 73 cents a share to 58 cents over the last thirty days.

Competitors to Watch: Synopsys, Inc. (NASDAQ:SNPS), Cadence Design Systems, Inc. (NASDAQ:CDNS), Magma Design Automation, Inc. (NASDAQ:LAVA), ANSYS, Inc. (NASDAQ:ANSS), PDF Solutions, Inc. (NASDAQ:PDFS), Autodesk, Inc. (NASDAQ:ADSK), National Instruments Corp (NASDAQ:NATI), Parametric Technology (NASDAQ:PMTC), Tessera Technologies, Inc. (NASDAQ:TSRA), and Intl. Business Machines Corp. (NYSE:IBM).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)