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Earnings To Watch: Methode Electronics (MEI) Reports Q3 Results Tomorrow

MEI Cover Image

Custom-engineered solutions manufacturer Methode Electronics (NYSE: MEI) will be reporting results tomorrow before the bell. Here’s what to expect.

Methode Electronics missed analysts’ revenue expectations by 3% last quarter, reporting revenues of $258.5 million, down 10.8% year on year. It was a slower quarter for the company, with a miss of analysts’ EPS 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 6.8% year on year to $268.5 million, improving from the 8.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

Methode Electronics Total Revenue

Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. OSI Systems delivered year-on-year revenue growth of 23.2%, beating analysts’ expectations by 8%, and Vertiv reported revenues up 19%, topping estimates by 4.8%. OSI Systems traded down 5.5% following the results while Vertiv was also down 2.2%.

Read our full analysis of OSI Systems’s results here and Vertiv’s results here.

There has been positive sentiment among investors in the electrical systems segment, with share prices up 6.7% on average over the last month. Methode Electronics is up 19.8% during the same time and is heading into earnings with an average analyst price target of $11.33 (compared to the current share price of $11.09).

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