Mentor Graphics Earnings: 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 Corporation Earnings Cheat Sheet

Results: Net income for Mentor Graphics Corporation rose to $30.6 million (27 cents per share) vs. $24.1 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 27.3% from the year-earlier quarter.

Revenue: Rose 7.3% to $268.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mentor Graphics Corporation reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $254.9 million.

Quoting Management: “Revenue and earnings were records for a Q3. Mentor and the Electronic Design Automation industry continue to benefit from the semiconductor industry’s transition to the next generations of technology,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “For Mentor, exceptional strength in bookings for system design, including mechanical analysis, and new applications of EDA to automotive design and embedded software development provided unique growth opportunities.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the second quarter, by 9 cents in the first quarter, and by 11 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 12.7% to $240.8 million in the second quarter. The figure rose 7.8% in the first quarter from the year earlier and climbed 4.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the fourth quarter have not changed from 55 cents. The average estimate hasn’t changed from $1.21 per share for the fiscal year.

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

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