The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mentor Graphics' revenues will improve 12.1% and EPS will improve 54.5%.
The average estimate for revenue is $239.5 million. On the bottom line, the average EPS estimate is $0.17.
Last quarter, Mentor Graphics recorded revenue of $247.9 million. 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.
Last quarter, non-GAAP EPS came in at $0.30. GAAP EPS were $0.25 for Q1 against -$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.
For the preceding quarter, gross margin was 82.6%, 50 basis points better 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.
The full year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 103 members out of 135 rating the stock outperform, and 32 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Mentor Graphics a green thumbs-up, and eight 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.
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.
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. The Motley Fool has no positions in the stocks mentioned above. 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.