Methode Electronics (NYSE:MEI) will release its quarterly earnings report on Thursday, 2024-12-05. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Methode Electronics to report an earnings per share (EPS) of $-0.15.
The market awaits Methode Electronics's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
Last quarter the company missed EPS by $0.01, which was followed by a 5.8% drop in the share price the next day.
Here's a look at Methode Electronics's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.30 | -0.20 | 0.09 | 0.12 |
| EPS Actual | -0.31 | -0.23 | -0.33 | 0.06 |
| Price Change % | -6.0% | 1.0% | -3.0% | -3.0% |
Tracking Methode Electronics's Stock Performance
Shares of Methode Electronics were trading at $11.09 as of December 03. Over the last 52-week period, shares are down 48.49%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Observations about Methode Electronics
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Methode Electronics.
A total of 1 analyst ratings have been received for Methode Electronics, with the consensus rating being Neutral. The average one-year price target stands at $13.0, suggesting a potential 17.22% upside.
Understanding Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Neonode, RF Industries and Benchmark Electronics, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- For Neonode, analysts project an Buy trajectory, with an average 1-year price target of $16.5, indicating a potential 48.78% upside.
- The consensus among analysts is an Buy trajectory for RF Industries, with an average 1-year price target of $4.5, indicating a potential 59.42% downside.
- For Benchmark Electronics, analysts project an Buy trajectory, with an average 1-year price target of $48.0, indicating a potential 332.82% upside.
Comprehensive Peer Analysis Summary
In the peer analysis summary, key metrics for Neonode, RF Industries and Benchmark Electronics are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Methode Electronics | Neutral | -10.77% | $44.60M | -2.42% |
| Neonode | Buy | -0.24% | $815K | -6.94% |
| RF Industries | Buy | 7.56% | $4.96M | -2.05% |
| Benchmark Electronics | Buy | -8.61% | $66.74M | 1.40% |
Key Takeaway:
Methode Electronics ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.
Unveiling the Story Behind Methode Electronics
Methode Electronics Inc makes component and subsystem devices employing electrical, radio remote control, electronic, wireless, and sensing technologies. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles. The products manufactured in the automotive segment include overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors. Geographically, the company generates maximum revenue from North America and the rest from Europe, the Middle East & Africa (EMEA), and Asia.
Financial Insights: Methode Electronics
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Negative Revenue Trend: Examining Methode Electronics's financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -10.77% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Methode Electronics's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -7.08%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Methode Electronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.42%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.32%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Methode Electronics's debt-to-equity ratio is below the industry average at 0.43, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Methode Electronics visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
