Methode Electronics (MEI) Q2 Earnings: What To Expect
Custom-engineered solutions manufacturer Methode Electronics (NYSE:MEI) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Methode Electronics beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $277.3 million, down 7.9% year on year. It was a mixed quarter for the company, with a miss of analysts’ earnings estimates.
Is Methode Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Methode Electronics’s revenue to decline 8% year on year to $266.6 million, a reversal from the 2.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Methode Electronics has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Methode Electronics’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Powell delivered year-on-year revenue growth of 49.8%, beating analysts’ expectations by 29.7%, and OSI Systems reported revenues up 16.8%, topping estimates by 2.9%. Powell traded up 37.7% following the results while OSI Systems was also up 3.9%.
Read our full analysis of Powell’s results here and OSI Systems’s results here.
Investors in the electrical systems segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Methode Electronics is down 6.4% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $9.94).
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