Methode Electronics (NYSE:MEI) Issues Earnings Results

Key Points

• Methode Electronics exceeded quarterly expectations: It reported a loss of $0.22 per share versus the projected loss of $0.27, while revenue reached $265.4 million, above the $238.31 million consensus estimate.
• Shares remained volatile but above recent averages: MEI fell $0.23 to $18.09, with a market capitalization of approximately $641.65 million and a 12-month trading range of $4.88 to $20.38.
• Analyst sentiment is mixed: The stock has a consensus “Hold” rating and a $22 average price target, while the company continues paying a quarterly dividend of $0.05, representing a 1.1% yield.

Methode Electronics (NYSE:MEI - Get Free Report) posted its earnings results on Wednesday. The electronics maker reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.27) by $0.05, FiscalAI reports. The company had revenue of $265.40 million during the quarter, compared to the consensus estimate of $238.31 million. Methode Electronics had a negative net margin of 3.50% and a negative return on equity of 5.59%.

Methode Electronics Stock Performance

MEI stock traded down $0.23 on Wednesday, reaching $18.09. 1,324,695 shares of the company were exchanged, compared to its average volume of 666,572. The firm has a market capitalization of $641.65 million, a PE ratio of -17.91 and a beta of 1.54. Methode Electronics has a 12 month low of $4.88 and a 12 month high of $20.38. The stock's fifty day moving average price is $16.11 and its 200 day moving average price is $11.34. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.37 and a quick ratio of 1.66.

Methode Electronics Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 17th were paid a $0.05 dividend. The ex-dividend date was Friday, July 17th. This represents a $0.20 annualized dividend and a dividend yield of 1.1%. Methode Electronics's dividend payout ratio (DPR) is presently -19.80%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on MEI. Craig Hallum assumed coverage on Methode Electronics in a research note on Tuesday, August 25th. They issued a "buy" rating and a $30.00 price objective on the stock. Barrington Research raised Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 target price for the company in a research report on Monday, June 29th. Zacks Research upgraded Methode Electronics from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. Robert W. Baird lifted their price target on shares of Methode Electronics from $8.50 to $16.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Methode Electronics in a report on Friday, July 17th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Methode Electronics has an average rating of "Hold" and a consensus price target of $22.00.

Institutional Investors Weigh In On Methode Electronics

A number of institutional investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC raised its stake in shares of Methode Electronics by 1,027.4% in the second quarter. EverSource Wealth Advisors LLC now owns 3,089 shares of the electronics maker's stock valued at $29,000 after purchasing an additional 2,815 shares in the last quarter. XTX Topco Ltd acquired a new stake in shares of Methode Electronics during the 2nd quarter valued at about $107,000. Mackenzie Financial Corp bought a new stake in shares of Methode Electronics in the 3rd quarter valued at approximately $103,000. Quantbot Technologies LP boosted its stake in Methode Electronics by 92.7% in the 3rd quarter. Quantbot Technologies LP now owns 17,331 shares of the electronics maker's stock valued at $131,000 after buying an additional 8,336 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV bought a new stake in Methode Electronics in the third quarter valued at $136,000. 95.49% of the stock is owned by institutional investors and hedge funds.

Methode Electronics Company Profile

Methode Electronics, Inc is a Chicago-based global manufacturer of custom-engineered electronic and electromechanical components and assemblies. Founded in 1946, Methode specializes in providing solutions that integrate electrical connectors, sensors, switches, human-machine interface devices and power distribution modules. The company's product portfolio addresses complex application requirements across a broad range of end markets, including automotive, industrial, energy, healthcare and data/telecommunications.

In its automotive segment, Methode develops advanced connector systems, circuit protection devices and thermal management solutions for internal combustion, hybrid and electric vehicles.

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