Mentor Graphics (MENT) Stock Plunges on Earnings Miss
NEW YORK (TheStreet) -- MentorGraphics (MENT) stock is plummeting 32.27% to $18.82 on heavy volume trading on Friday, after the company's fiscal 2016 third quarter earnings results missed analysts' expectations.
After the market close on Thursday, the Wilsonville, OR-based company, which supplies electronic design automation tools, reported earnings of 28 cents per share. Revenue declined to $290.5 million, down from $292.6 million in the year-ago period.
Analysts were expecting the company to report earnings of 29 cents per share on revenue of $292 million.
Additionally, the company lowered its fiscal 2016 earnings projections to $1.40 per share from $1.90 per share.
"Active evaluations of Mentor's Veloce emulator increased in the third quarter, but the time required for completion of evaluations also increased," CEO Walden Rhines said in a statement. "This, along with semiconductor industry consolidations, is having a negative impact on our business."
So far today, 11.53 million shares of Mentor Graphics have traded, versus its 30-day average of about 746,00 shares.
Separately, TheStreet Ratings team rates MENTOR GRAPHICS CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate MENTOR GRAPHICS CORP (MENT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: MENT
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