Mentor Graphics (Nasdaq: MENT ) is expected to report Q1 earnings on May 23. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mentor Graphics's revenues will compress -9.2% and EPS will drop -83.3%.
The average estimate for revenue is $225.2 million. On the bottom line, the average EPS estimate is $0.05.
Last quarter, Mentor Graphics reported revenue of $331.2 million. GAAP reported sales were 3.4% higher than the prior-year quarter's $320.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.58. GAAP EPS of $0.49 for Q4 were 3.9% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 86.2%, 50 basis points worse than the prior-year quarter. Operating margin was 22.2%, 10 basis points worse than the prior-year quarter. Net margin was 18.6%, 60 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 107 members out of 140 rating the stock outperform, and 33 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 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 outperform, with an average price target of $20.29.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Mentor Graphics makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Mentor Graphics to My Watchlist.