Mentor Graphics Earnings Preview: Can This Streak Continue?

Mentor Graphics (NASDAQ:MENT) will report earnings after markets close on Thursday, August 22nd. Mentor Graphics Corporation manufactures, markets, and supports software and hardware electronic design automation products. The Company provides related services which enable engineers to design, analyze, simulate, model, implement, and verify the components of electronic systems.

Here is your Cheat Sheet to Mentor Graphics Earnings:

Earnings Expectations: Analysts expect earnings of $0.17 per share on revenues of $244.90 million. Currently, the company’s P/E ratio stands at 22.49.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.5 to a profit $0.19. For the current year, the average estimate is a profit of $1.56, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Mentor Graphics has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 789 803 915 1,015 1,089
Diluted EPS ($) -0.97 -0.23 0.25 0.74 1.17

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013 Apr. 30, 2013
Revenue ($) in millions 240.81 268.76 331.24 226.51
Diluted EPS ($) 0.16 0.27 0.49 0.01

Past Performance:
Mentor Graphics has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]