The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Mentor Graphics missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share didn't change. GAAP earnings per share dropped.
Gross margins shrank, operating margins shrank, net margins expanded.
Mentor Graphics tallied revenue of $331.2 million. The seven analysts polled by S&P Capital IQ expected revenue of $343.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.58. The seven earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. Non-GAAP EPS of $0.58 were the same as the prior-year quarter. 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 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.
Next quarter's average estimate for revenue is $241.8 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 106 members out of 140 rating the stock outperform, and 34 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 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 $20.29.
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