Methode Electronics MEI is preparing to release its quarterly earnings on Wednesday, 2025-07-09. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Methode Electronics to report an earnings per share (EPS) of $0.12.
Anticipation surrounds Methode Electronics's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Overview of Past Earnings
Last quarter the company missed EPS by $0.13, which was followed by a 28.92% drop in the share price the next day.
Here's a look at Methode Electronics's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.08 | -0.16 | -0.30 | -0.20 |
| EPS Actual | -0.21 | 0.14 | -0.31 | -0.23 |
| Price Change % | -28.999999999999996% | -9.0% | -6.0% | 1.0% |
Performance of Methode Electronics Shares
Shares of Methode Electronics were trading at $10.07 as of July 07. Over the last 52-week period, shares are up 11.6%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Methode Electronics
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Methode Electronics.
Analysts have provided Methode Electronics with 1 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $7.0, suggesting a potential 30.49% downside.
Comparing Ratings with Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Data I/O, Benchmark Electronics and IPG Photonics, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Data I/O, with an average 1-year price target of $5.22, suggesting a potential 48.16% downside.
- Analysts currently favor an Buy trajectory for Benchmark Electronics, with an average 1-year price target of $47.0, suggesting a potential 366.73% upside.
- Analysts currently favor an Buy trajectory for IPG Photonics, with an average 1-year price target of $70.0, suggesting a potential 595.13% upside.
Peer Metrics Summary
The peer analysis summary outlines pivotal metrics for Data I/O, Benchmark Electronics and IPG Photonics, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Methode Electronics | Neutral | -7.55% | $41.30M | -2.00% |
| Data I/O | Buy | 1.26% | $3.19M | -2.17% |
| Benchmark Electronics | Buy | -6.49% | $63.18M | 0.33% |
| IPG Photonics | Buy | -9.61% | $89.81M | 0.18% |
Key Takeaway:
Methode Electronics ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks at the top for Return on Equity. Overall, Methode Electronics is positioned in the middle compared to its peers based on the provided metrics.
Discovering Methode Electronics: A Closer Look
Methode Electronics Inc makes component and subsystem devices employing electrical, radio remote control, electronic, wireless, and sensing technologies. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles. The products manufactured in the automotive segment include overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors. Geographically, the company generates maximum revenue from North America and the rest from Europe, the Middle East & Africa (EMEA), and Asia.
Methode Electronics's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Negative Revenue Trend: Examining Methode Electronics's financials over 3 months reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -7.55% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -6.0%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Methode Electronics's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.0%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Methode Electronics's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.07%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Methode Electronics's debt-to-equity ratio is below the industry average at 0.5, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Methode Electronics visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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