Upcoming AWS Coverage on Autodesk Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 2, 2016 / Active Wall St. announces its post-earnings coverage on Mentor Graphics Corp. (NASDAQ: MENT). The company posted its third quarter fiscal 2016 financial results on November 22, 2016. The electronic hardware and software design products and services provider's revenue and earnings results outperformed Wall Street's expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Mentor Graphics' competitors within the Technical & System Software space, Autodesk, Inc. (NASDAQ: ADSK), reported on November 29, 2016, its financial results for the third quarter of fiscal 2017. AWS will be initiating a research report on Autodesk in the coming days.

Today, AWS is promoting its earnings coverage on MENT; touching on ADSK. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=MENT

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Earnings Reviewed

For the three months ended on October 31, 2016, Mentor Graphics reported revenues of $322.5 million, which is a record for a third quarter. Revenue was also up 11% from the same period a year ago. The company's sales numbers outperformed analysts' expectations of $308.8 million.

For Q3 2016, the company reported GAAP earnings of $41.76 million, or $0.37 per share, for Q3 2016 compared to GAAP earnings of $14.68 million, or $0.12 per share, for Q3 2015. Non-GAAP earnings, adjusted for stock option expense and non-recurring costs totaled $0.50 per share, up 78% on a y-o-y basis, topping Wall Street's expectations for earnings of $0.42 per share.

Bookings Improve

For Q3 2016, Mentor Graphics noted that book-to-bill was a record for a third quarter and solidly above 1.0 for the second consecutive quarter. The company's annualized fee growth for top 10 renewals was 60% overall, with fees from systems customers growing over 160% and those from integrated circuit (IC) customers growing 35% from the year ago same period. Mentor Graphics' average term length for renewals in the top 10 deals was 3.1 years. The company's Emulation product's revenue rocketed 100% on a y-o-y basis and included 4 new customers for the second consecutive quarter.

Margin Matters

For Q3 2016, Mentor Graphics' GAAP gross margin was 84.1%, while non-GAAP gross margin of 84.9% was the highest for a Q3 in the last five years and 340 basis points higher than Q2 2016. The company noted that robust revenue combined with its continued attention to expense control resulted in a GAAP operating margin of 18%. In addition non-GAAP operating margin of 22% drove non-GAAP operating profits up over 60% on a y-o-y basis. The company's GAAP operating expenses were $215 million, while non-GAAP operating expenses of $202 million were on guidance and flat on a y-o-y basis.

Balance Sheet

Mentor Graphics announced a quarterly dividend of $0.055 per share. The dividend is payable on January 03, 2017, to shareholders of record at the close of business on December 08, 2016.

Earnings Outlook

On November 14, 2016, Siemens and Mentor Graphics announced that they have entered into a merger agreement under which Siemens will acquire Mentor Graphics for $37.25 per share in cash, which represents an enterprise value of $4.5 billion. As a result of the acquisition announcement, the company will not provide an outlook for future financial results and has also withdrawn all previously issued financial guidance.

Stock Performance

On Thursday, the stock closed the trading session at $36.51, marginally down 0.11% from its previous closing price of $36.55. A total volume of 3.84 million shares have exchanged hands, which was higher than the 3-month average volume of 2.93 million shares. Mentor Graphics' stock price rallied 28.06% in the last month, 50.67% in the past three months, and 67.91% in the previous six months. Furthermore, since the start of the year, shares of the company have skyrocketed 99.75%. The stock is trading at a PE ratio of 46.51 and has a dividend yield of 0.60%.

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SOURCE: Active Wall Street