Mentor Graphics (Nasdaq: MENT) reported earnings on May 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), Mentor Graphics missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Gross margins dropped, operating margins increased, net margins improved.

Revenue details
Mentor Graphics logged revenue of $247.9 million. The seven analysts polled by S&P Capital IQ looked for sales of $254.9 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $230.0 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 $0.30. The seven earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. GAAP EPS were $0.25 for Q1 compared to -$0.02 per share for the prior-year quarter.

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 82.6%, 120 basis points worse than the prior-year quarter. Operating margin was 13.5%, 490 basis points better than the prior-year quarter. Net margin was 11.4%, 1,240 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $238.2 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 387 members out of 399 rating the stock outperform, and 13 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Mentor Graphics a green thumbs-up, and three 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 $18.92.

New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does Mentor Graphics fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear.." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.