Methode Electronics (NYSE:MEI) Announces Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Methode Electronics reported ($0.22) earnings per share (EPS) for the quarter, surpassing analysts' expectations of ($0.40) by $0.18.
• The company's stock price rose to $7.47, with a market cap of $263 million and a P/E ratio of -4.20.
• Methode Electronics has recently reduced its dividend to $0.07 per share, following a negative dividend payout ratio of -15.73%.

Methode Electronics (NYSE:MEI - Get Free Report) posted its earnings results on Tuesday. The electronics maker reported ($0.22) earnings per share for the quarter, beating analysts' consensus estimates of ($0.40) by $0.18, Zacks reports. Methode Electronics had a negative net margin of 5.30% and a negative return on equity of 5.27%. The business had revenue of $240.50 million for the quarter, compared to analysts' expectations of $224.57 million. During the same quarter in the previous year, the firm posted ($0.31) earnings per share. Methode Electronics updated its FY 2026 guidance to EPS.

Methode Electronics Price Performance

NYSE MEI traded down $0.09 on Friday, hitting $8.13. 569,767 shares of the company were exchanged, compared to its average volume of 434,072. Methode Electronics has a 1-year low of $5.08 and a 1-year high of $17.45. The firm has a 50 day moving average of $7.20 and a two-hundred day moving average of $7.35. The company has a current ratio of 2.50, a quick ratio of 1.57 and a debt-to-equity ratio of 0.47. The company has a market cap of $286.40 million, a P/E ratio of -5.25 and a beta of 1.07.

Methode Electronics Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Monday, July 21st were given a dividend of $0.07 per share. The ex-dividend date was Monday, July 21st. This represents a $0.28 annualized dividend and a yield of 3.4%. Methode Electronics's dividend payout ratio is -18.06%.

Institutional Trading of Methode Electronics

Hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC boosted its holdings in shares of Methode Electronics by 29.7% in the second quarter. AQR Capital Management LLC now owns 1,209,756 shares of the electronics maker's stock valued at $11,505,000 after buying an additional 276,923 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in Methode Electronics by 44.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 538,501 shares of the electronics maker's stock worth $5,121,000 after acquiring an additional 165,809 shares in the last quarter. Bridgeway Capital Management LLC boosted its holdings in shares of Methode Electronics by 72.4% in the 2nd quarter. Bridgeway Capital Management LLC now owns 246,956 shares of the electronics maker's stock valued at $2,349,000 after buying an additional 103,688 shares during the last quarter. Jump Financial LLC bought a new position in shares of Methode Electronics in the second quarter valued at $877,000. Finally, Ameriprise Financial Inc. increased its holdings in Methode Electronics by 12.9% during the second quarter. Ameriprise Financial Inc. now owns 802,899 shares of the electronics maker's stock worth $7,636,000 after buying an additional 91,603 shares during the last quarter. Institutional investors and hedge funds own 95.49% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wall Street Zen raised Methode Electronics from a "sell" rating to a "hold" rating in a report on Saturday, August 30th. Robert W. Baird upped their price target on Methode Electronics from $7.00 to $8.50 and gave the company a "neutral" rating in a research report on Thursday. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $11.25.

About Methode Electronics

Methode Electronics, Inc designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers.