Mentor Graphics Corp Second Quarter Earnings Sneak Peek

Mentor Graphics Corp (NASDAQ:MENT) will unveil its latest earnings on Thursday, August 18, 2011. Mentor Graphics Corporation supplies electronic design automation systems – computer software & emulation systems used to automate the design, analysis & testing of electronic hardware & embedded systems software in electronic systems & components.

Mentor Graphics Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 7 cents per share, a wider loss from the year earlier quarter net loss of 5 cents. During the past three months, the average estimate has moved down from 9 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at a loss of 7 cents during the last month. For the year, analysts are projecting profit of 50 cents per share, a decline of 2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 15 cents per share against a mean estimate of profit of 14 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $210 million in revenue this quarter, a rise of 11.7% from the year ago quarter. Analysts are forecasting total revenue of $1 billion for the year, a rise of 9.3% from last year’s revenue of $914.8 million.

Analyst Ratings: Analysts are bullish on this stock with four analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 27.4% to $230 million in first quarter. The figure rose 29.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 26.3% in the third quarter of the last fiscal year from the year-ago quarter and 2.9% in the second quarter of the last fiscal year.

Mentor Graphics’ loss in the latest quarter follows profits in the previous two quarters. The company reported a loss of $2.4 million in the first quarter and a profit of $50.6 million in the fourth quarter of the last fiscal year and profit of $15.3 million in the third quarter of the last fiscal year.

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).

Stock Price Performance: During May 18, 2011 to August 12, 2011, the stock price had fallen $5.55 (-37.4%) from $14.85 to $9.30. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 13.2% (+$1.66) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight-straight days, falling 23.5% (-$2.69) over that span. Shares are down $2.70 (-22.5%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.