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What: Shares of Mentor Graphics
So what: Revenue rose 13.7% to $213.7 million while adjusted profit soared from $0.01 a share a year ago to $0.11 in Q2. Analysts were expecting just $0.05 a share on $209.9 million in revenue, according to data compiled by Yahoo! Finance.
Now what: Talk about encouraging. Analysts already see Mentor trading at a discount to the long-term earnings growth rate they expect. The resulting 0.92 PEG ratio could prove conservative if the company keeps blowing away estimates like this. Do you agree? Would you buy at these levels? Weigh in using the comments box below.
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Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.
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