Mentor Graphics Corp  (MENT) Trade Now »     Rate MENT  -  Discuss MENT  -  Add to Watch List        

Mentor Graphics (MENT) shares are trading higher after hours on better-than-expected results for its fiscal second quarter ended July 31.

For Q2, the company reported revenue of $182.6 million, about flat with a year ago, and sharply ahead of the Street at $165.8 million. Mentor posted a non-GAAP profit of 2 cents a share; the Street had been expecting a loss of 10 cents.

For Q3, Mentor sees revenue of $183 million and a non-GAAP profit of a penny a share. The Street had been expecting $179.6 million and a loss of 2 cents.

Mentor Graphics (MENT) shares are in for a tough session after the company issued highly disappointing guidance for its fiscal second quarter ending July.

Foor FY Q1 ended April 30, the company posted revenue of $193.8 million and non-GAAP EPS of 9 cents a share; that missed the top line Street consensus estimate of $201.8 million, but beat at the bottom line by two cents. Revenue was down from $179.2 million a year ago.

Mentor Graphics (MENT) may be surprisingly insulated from the semiconductor slump, writes Barron's Jay Palmer, and the firm's earning power could help shares jump 30%.

Not all investors are enthusiastic about the stock. Mentor lost money in three out of four quarters last year, is carrying a large debt load, and faces weakness in the global semiconductor industry. Little surprise then that the stock is trading around $6.76/share, down from a 12-month high of $16.

Mentor Graphics (MENT) shares are trading sharply higher in late trading on a better-than-expected outlook for the EDA software company’s fiscal first quarter ending in April.

For FY Q4 ended January, the company posted revenue of $242.6 million and non-GAAP profits of 35 cents a share, below the Street at $248.3 million and 35 cents. Revenues were down 14.8% from a year ago.

But Mentor also said that it expects FY Q1 revenues of $200 million to $210 million, with non-GAAP profits of 5-10 cents a share, well ahead of the Street consensus of $182.9 million and a loss of 5 cents.

So, this is the last non-Friday trading session this month, which apparently is reason enough for an earnings report deluge. The following group of companies is due to report after the close:

• Dell (DELL)
• Blue Coat (BCSI)
• Novell (NOVL)
• Magma Design (LAVA)
• Borland (BORL)
• Mentor Graphics (MENT)
• SourceForge (LNUX)
• Novatel (NVTL)
• CBeyond (CBEY)
• Autodesk (ADSK)
• Omnivision (OVTI)
• PCTel (PCTI)
• Leap Wireless (LEAP)
• Dot Hill (HILL)
• Anadigics (ANAD)