Methode Electronics (NYSE:MEI) Posts Earnings Results, Beats Expectations By $0.05 EPS

Methode Electronics (NYSE:MEI) posted its quarterly earnings results on Wednesday. The electronics maker reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.05, FiscalAI reports. Methode Electronics had a negative return on equity of 5.60% and a negative net margin of 3.52%.The business had revenue of $265.40 million for the quarter, compared to analyst estimates of $238.31 million.

Methode Electronics Stock Performance

Shares of NYSE MEI opened at $15.33 on Friday. Methode Electronics has a 12-month low of $4.88 and a 12-month high of $20.38. The company has a market cap of $543.76 million, a PE ratio of -14.74 and a beta of 1.54. The stock has a 50 day simple moving average of $16.15 and a 200-day simple moving average of $11.45. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.48.

Methode Electronics Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 17th were issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, July 17th. Methode Electronics’s payout ratio is -19.80%.

Trending Headlines about Methode Electronics

Here are the key news stories impacting Methode Electronics this week:

• Positive Sentiment: Revenue increased 10.4% year over year to $265.4 million, exceeding the $238.3 million consensus estimate. Industrial sales rose 27% to $156.8 million, led by data-center, on-highway and off-highway lighting demand. Methode Electronics Fiscal 2027 First Quarter Results
• Positive Sentiment: Adjusted EPS was a loss of $0.22, better than analysts’ expected loss of $0.27–$0.47, depending on the estimate source. Methode also booked $75 million in new non-data-center awards, representing approximately $400 million of lifetime revenue potential.
• Positive Sentiment: The company repaid $10.1 million of debt during the quarter and extended certain revolving-credit maturities to October 2028, improving near-term refinancing flexibility.
• Neutral Sentiment: Methode reaffirmed fiscal 2027 guidance, including revenue of $1.025 billion to $1.075 billion and adjusted EBITDA of $72 million to $82 million. Management cited continued transformation efforts but warned that tariffs, geopolitical risks, EV demand, program launches and supply-chain conditions could affect results. Methode Confirms Fiscal 2027 Forecast
• Negative Sentiment: GAAP net loss widened to $11.4 million, or $0.32 per share, from $10.3 million, while adjusted EBITDA fell to $13.7 million from $15.7 million. Operating expenses rose sharply because of investments in talent, capabilities and professional fees.
• Negative Sentiment: Operating cash flow shifted to a $7.8 million outflow from a $25.1 million inflow a year earlier, and free cash flow was negative $10.9 million. Automotive sales were essentially flat, while Interface revenue plunged following the dataMate divestiture and consumer-appliance program roll-offs.

Institutional Trading of Methode Electronics

Several hedge funds have recently added to or reduced their stakes in the business. UBS Group AG increased its holdings in shares of Methode Electronics by 887.1% during the third quarter. UBS Group AG now owns 476,974 shares of the electronics maker’s stock valued at $3,601,000 after purchasing an additional 428,654 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Methode Electronics by 31.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,380,436 shares of the electronics maker’s stock valued at $9,166,000 after buying an additional 331,618 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Methode Electronics by 54.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 832,344 shares of the electronics maker’s stock valued at $6,284,000 after buying an additional 293,843 shares during the period. AQR Capital Management LLC raised its position in shares of Methode Electronics by 29.7% during the 2nd quarter. AQR Capital Management LLC now owns 1,209,756 shares of the electronics maker’s stock worth $11,505,000 after buying an additional 276,923 shares in the last quarter. Finally, Mackenzie Financial Corp raised its position in shares of Methode Electronics by 1,841.5% during the 4th quarter. Mackenzie Financial Corp now owns 265,157 shares of the electronics maker’s stock worth $1,768,000 after buying an additional 251,500 shares in the last quarter. Institutional investors own 95.49% of the company’s stock.

Analysts Set New Price Targets

Several analysts have weighed in on MEI shares. Robert W. Baird boosted their target price on shares of Methode Electronics from $8.50 to $16.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. Barrington Research raised shares of Methode Electronics from a “market perform” rating to an “outperform” rating and set a $25.00 price target for the company in a report on Monday, June 29th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Methode Electronics in a research note on Friday, July 17th. Sidoti reissued a “neutral” rating and issued a $17.00 target price on shares of Methode Electronics in a report on Friday, June 26th. Finally, Zacks Research upgraded Methode Electronics from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 4th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $22.00.

Methode Electronics Company Profile

Methode Electronics, Inc is a Chicago-based global manufacturer of custom-engineered electronic and electromechanical components and assemblies. Founded in 1946, Methode specializes in providing solutions that integrate electrical connectors, sensors, switches, human-machine interface devices and power distribution modules. The company’s product portfolio addresses complex application requirements across a broad range of end markets, including automotive, industrial, energy, healthcare and data/telecommunications.

In its automotive segment, Methode develops advanced connector systems, circuit protection devices and thermal management solutions for internal combustion, hybrid and electric vehicles.