Earnings To Watch: Methode Electronics (MEI) Reports Q1 Results Tomorrow

Custom-engineered solutions manufacturer Methode Electronics (NYSE:MEI) will be announcing earnings results this Wednesday after the bell. Here’s what you need to know.

Methode Electronics missed analysts’ revenue expectations by 8.9% last quarter, reporting revenues of $239.9 million, down 7.6% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Is Methode Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Methode Electronics’s revenue to decline 17.5% year on year to $228.8 million, a further deceleration from the 7.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 missed Wall Street’s revenue estimates four times over the last two years.

Looking at Methode Electronics’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FuelCell Energy delivered year-on-year revenue growth of 66.8%, beating analysts’ expectations by 14.4%, and ChargePoint reported a revenue decline of 8.8%, falling short of estimates by 3.2%. FuelCell Energy traded up 43.5% following the results while ChargePoint was down 23.3%.

Read our full analysis of FuelCell Energy’s results here and ChargePoint’s results here.

There has been positive sentiment among investors in the electrical equipment segment, with share prices up 5% on average over the last month. Methode Electronics is up 19.7% during the same time and is heading into earnings with an average analyst price target of $10.50 (compared to the current share price of $10.26).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.