Mentor Graphics (Nasdaq: MENT) reported earnings on Aug. 23. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended July 31 (Q2), Mentor Graphics met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
 Mentor Graphics booked revenue of $240.8 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $240.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $213.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.21. The six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.16 for Q2 were 300% higher than the prior-year quarter's $0.04 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 81.6%, 80 basis points better than the prior-year quarter. Operating margin was 8.6%, 610 basis points better than the prior-year quarter. Net margin was 7.5%, 550 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $263.7 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.38.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 106 members out of 137 rating the stock outperform, and 31 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Mentor Graphics a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mentor Graphics is buy, with an average price target of $18.36.

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