Methode Electronics Earnings: Here’s Why Investors are Buying Shares Now

Methode Electronics Inc. (NYSE:MEI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 30.35%.

Methode Electronics Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 260% to $0.36 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 40.9% to $167.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Methode Electronics Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.21. It beat the average revenue estimate of $148.85 million.

Quoting Management: President and Chief Executive Officer Donald W. Duda said, “Methode’s first-quarter financial results reflect over 40 percent revenue growth coupled with strong margin improvement, which delivered record net income from operations for our shareholders. As these results demonstrate, we are beginning to reap the benefits of our efforts to significantly grow Methode’s revenue stream by providing an unmatched combination of customer focus, differentiated technology, problem solving capabilities and world-class manufacturing.”

Key Stats (on next page)…

Revenue increased 12.77% from $148.36 million in the previous quarter. EPS increased 50% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.26 to a profit $0.24. For the current year, the average estimate has moved up from a profit of $1.04 to a profit of $1.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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