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What: Shares of Mentor Graphics have gotten crushed today by as much as 25% after the company reported worse-than-expected earnings and disappointing guidance.
So what: Revenue in the fourth quarter added up to $331.2 million, which resulted in non-GAAP earnings per share of $0.58. Those results were mixed relative to consensus estimates, which called for $343.2 million in sales and $0.55 per share in adjusted profit. CEO Walden C. Rhines said it was the 16th consecutive quarter of exceeding non-GAAP earnings guidance, but that didn't console investors much.
Now what: The company repurchased $14 million of shares during the quarter at an average price of $16.85. Mentor Graphics expects revenue in the coming year to total $1.12 billion, with non-GAAP earnings per share of $1.53. Next quarter should generate roughly $225 million in sales and non-GAAP earnings per share of $0.05. In contrast, the Street was modeling for nearly $242 million in revenue in the current quarter and $0.21 per share in adjusted profit.
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The article Why Mentor Graphics Shares Got Crushed originally appeared on Fool.com.
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