What Happened?
Shares of custom-engineered solutions manufacturer Methode Electronics (NYSE: MEI) fell 5% in the morning session after the stock continued to slide after the company reported third-quarter results that showed a steep year-over-year sales decline.
This move extended the sharp losses from the previous trading session, which followed the release of the financial report. In its update, Methode announced net sales of $246.9 million, a 15.6% decrease compared to the same period in the previous year. The company's financial performance was mainly impacted by a decline in sales volumes across all its segments, especially in the Automotive division, which saw a 24.1% drop. The company also reported a net loss of $9.9 million for the quarter.
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What Is The Market Telling Us
Methode Electronics’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Methode Electronics is down 37.3% since the beginning of the year, and at $7.42 per share, it is trading 47.1% below its 52-week high of $14.02 from December 2024. Investors who bought $1,000 worth of Methode Electronics’s shares 5 years ago would now be looking at an investment worth $197.55.
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