Methode Electronics (NYSE:MEI) Announces Quarterly Earnings Results

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 the consensus estimate of ($0.40) by $0.18, Zacks reports. The company had revenue of $240.50 million for the quarter, compared to analyst estimates of $224.57 million. Methode Electronics had a negative return on equity of 5.60% and a negative net margin of 5.97%.During the same quarter in the prior year, the company earned ($0.31) earnings per share. Methode Electronics updated its FY 2026 guidance to EPS.

Methode Electronics Price Performance

Shares of MEI stock traded up $1.02 during trading on Wednesday, hitting $8.42. The company had a trading volume of 1,006,286 shares, compared to its average volume of 405,325. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.57 and a current ratio of 2.40. The firm has a market capitalization of $296.57 million, a P/E ratio of -4.73 and a beta of 1.07. The stock's 50-day moving average price is $7.30 and its 200 day moving average price is $7.41. Methode Electronics has a one year low of $5.08 and a one year high of $17.45.

Methode Electronics Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Monday, July 21st were issued 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 3.3%. Methode Electronics's payout ratio is currently -15.73%.

Institutional Investors Weigh In On Methode Electronics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its holdings in 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 during the period. Sei Investments Co. grew its holdings in Methode Electronics by 9.3% during the 2nd quarter. Sei Investments Co. now owns 54,040 shares of the electronics maker's stock worth $514,000 after acquiring an additional 4,600 shares during the period. Empowered Funds LLC grew its holdings in Methode Electronics by 8.3% during the 1st quarter. Empowered Funds LLC now owns 127,268 shares of the electronics maker's stock worth $812,000 after acquiring an additional 9,787 shares during the period. XTX Topco Ltd acquired a new stake in Methode Electronics during the 2nd quarter worth about $107,000. Finally, JPMorgan Chase & Co. grew its holdings in Methode Electronics by 10.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 191,757 shares of the electronics maker's stock worth $1,824,000 after acquiring an additional 17,418 shares during the period. 95.49% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Wall Street Zen upgraded Methode Electronics from a "sell" rating to a "hold" rating in a research note on Saturday, August 30th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Methode Electronics has a consensus rating of "Moderate Buy" and a consensus price target of $10.50.

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.