Mentor Graphics Earnings: Beats Street with a Profitable Swing Up

Mentor Graphics Corporation (NASDAQ:MENT) reported its results for the first 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 Corporation Earnings Cheat Sheet

Results: Reported a profit of $27.5 million (25 cents per diluted share) in the quarter. Mentor Graphics Corporation had a net loss of $2.4 million or a loss 2 cents per share in the year-earlier quarter.

Revenue: Rose 7.8% to $247.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mentor Graphics Corporation beat the mean analyst estimate of 17 cents per share. It fell short of the average revenue estimate of $254.9 million.

Quoting Management: “Strength in our business continued in the first quarter, with record first quarter revenue and earnings,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “The release of our next-generation emulation platform during the quarter has attracted broad customer interest, and we have a very full sales funnel.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the fourth quarter of the last fiscal year, by 14 cents in the third quarter of the last fiscal year, and by 15 cents in the second quarter of the last fiscal year.

Revenue has increased for four consecutive quarters. Revenue increased 4.2% to $320.4 million in the fourth quarter of the last fiscal year. The figure rose 4.8% in the third quarter of the last fiscal year from the year earlier and climbed 13.7% in the second quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 9 cents per share to 8 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from 92 cents a share to $1.01 over the last ninety days.

Competitors to Watch: Synopsys, Inc., Cadence Design Systems, Inc., Magma Design Automation, Inc., ANSYS, Inc., PDF Solutions, Inc., Autodesk, Inc., National Instruments Corp, Parametric Technology, Tessera Technologies, Inc., and Intl. Business Machines Corp.

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

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