Custom-engineered solutions manufacturer Methode Electronics (NYSE:MEI) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
Methode Electronics beat analysts’ revenue expectations by 10.8% last quarter, reporting revenues of $240.5 million, down 7% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue 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, analysts are expecting Methode Electronics’s revenue to decline 18.8% year on year to $237.7 million, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.
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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 10.8% on average.
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. Thermon delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 10.3%, and Vertiv reported revenues up 29%, topping estimates by 3.4%. Thermon traded up 16.3% following the results while Vertiv was also up 4.7%.
Read our full analysis of Thermon’s results here and Vertiv’s results here.
Investors in the electrical systems segment have had fairly steady hands going into earnings, with share prices down 1.8% on average over the last month. Methode Electronics is up 12.1% during the same time and is heading into earnings with an average analyst price target of $10.25 (compared to the current share price of $7.49).
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