Mentor Graphics First Quarter Earnings Sneak Peek

Mentor Graphics Corp (NASDAQ:MENT) will unveil its latest earnings on Friday, May 25, 2012. 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.

Mentor Graphics Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 17 cents per share, a rise of 13.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 5 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 17 cents during the last month. For the year, analysts are projecting net income of $1.01 per share, a decline of 2.9% 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 11 cents, reporting profit of 58 cents per share against a mean estimate of net income of 47 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $254.9 million in revenue this quarter, a rise of 10.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.1 billion for the year, a rise of 8.9% from last year’s revenue of $1.01 billion.

Analyst Ratings: Analysts are optimistic about this stock, with five analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 14.3% to $57.8 million (51 cents a share) from $50.6 million (47 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.2% to $320.4 million from $307.3 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 27.4% in the first quarter of the last fiscal year, 13.7% in the second quarter of the last fiscal year and 4.8% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between March 23, 2012 and May 21, 2012, the stock price had fallen 76 cents (-5%), from $15.32 to $14.56. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 25, 2012, when shares rose for eight straight days, increasing 8.6% (+$1.12) 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, dropping 23.5% (-$2.69) over that span.

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

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