Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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.

Interested in more info on Mentor Graphics? Add it to your watchlist by clicking here.

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The article Why Mentor Graphics Shares Got Crushed originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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