Magma Design Automation, Inc. (NASDAQ:LAVA) will unveil its latest earnings on Thursday, December 1, 2011. Magma Design Automation provides design, implementation, analysis, and verification software that enables chip designers to reduce the time it takes to design and produce complex integrated circuits.

Magma Design Automation, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 8 cents per share, a rise of 700% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 300% versus last year to 36 cents.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 4 cents per share versus a mean estimate of profit of 7 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $37.8 million in revenue this quarter, a rise of 11.5% from the year ago quarter. Analysts are forecasting total revenue of $158.9 million for the year, a rise of 14.1% from last year’s revenue of $139.3 million.

Analyst Ratings: The limited number of analysts covering the stock seem bullish with three analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $101,000 (0 cents a share) from a loss of $3.3 million (6 cents) a year earlier, but missed analyst expectations. Revenue rose 8.4% to $35.3 million from $32.6 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 13.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 12.3% in the third quarter of the last fiscal year from the year-ago quarter and 14.4% in the second quarter of the last fiscal year.

Magma Design Automation’s loss in the latest quarter followed profits in the previous two quarters. The company reported a profit of $1.7 million in the fourth quarter of the last fiscal year and profit of $961,000 in the third quarter of the last fiscal year.

Competitors to Watch: Synopsys, Inc. (NASDAQ:SNPS), Mentor Graphics Corp. (NASDAQ:MENT), Cadence Design Systems, Inc. (NASDAQ:CDNS), PDF Solutions, Inc. (NASDAQ:PDFS), ANSYS, Inc. (NASDAQ:ANSS), Tessera Technologies, Inc. (NASDAQ:TSRA), Parametric Technology (NASDAQ:PMTC), Autodesk, Inc. (NASDAQ:ADSK), Cimatron Ltd. (NASDAQ:CIMT), and National Instruments Corp (NASDAQ:NATI).

Stock Price Performance: During September 29, 2011 to November 25, 2011, the stock price had risen 51 cents (10.7%) from $4.76 to $5.27. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 15.2% (+82 cents) over that span. It saw one of its worst periods between April 4, 2011 and April 13, 2011 when shares fell for eight-straight days, falling 7.4% (-52 cents) over that span. Shares are up 26 cents (+5.2%) year to date.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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