Custom-engineered solutions manufacturer Methode Electronics (NYSE: MEI) will be reporting results this Wednesday after market close. Here’s what to look for.
Methode Electronics beat analysts’ revenue expectations last quarter, reporting revenues of $233.7 million, down 2.6% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Methode Electronics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Methode Electronics’s revenue to decline 7.2% year on year, in line with the 7.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Methode Electronics has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Methode Electronics’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Thermon delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 9.6%, and Keysight reported revenues up 31.5%, topping estimates by 0.8%. Keysight’s stock price was unchanged following the results.
Read our full analysis of Thermon’s results here and Keysight’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 3.7% 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 $9.25 (compared to the current share price of $13.98).
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