Aug. 29 at 2:05 AM
$MEI "Heads up alert! Upcoming earnings on Wednesday, 9/3/2025 for
$MEI
Neutral (5.2)
### Detailed Analysis
Methode Electronics Financial Overview:
Methode Electronics, Inc.
(NYSE: MEI) has experienced significant volatility recently, with its stock price declining by 48.9% over the past six months.
This drop was primarily driven by softer quarterly results and unexpected inventory write-offs, which led to a
$15 million adjustment related to automotive and EV programs.
Despite these challenges, the company's insiders have shown confidence by purchasing US
$513.6k of stock, suggesting an optimistic outlook for the future.
From a valuation perspective, Methode Electronics' price-to-earnings (P/E) ratio is currently below the industry average, indicating potential undervaluation.
However, its earnings per share (EPS) growth has been hampered by recent operational challenges, impacting investor sentiment.
Revenue forecasts remain cautious, with analysts highlighting the need for the company to address supply chain issues and enhance its automotive program execution.
Industry Comparison:
Compared to its peers in the electrical systems industry, Methode Electronics lags in terms of recent performance.
Companies like Kulicke and Soffa have reported revenue and earnings surprises, positioning themselves favorably in the market.
Methode Electronics needs to demonstrate consistent improvement in its core segments to regain investor confidence and compete effectively within the sector.
### Upcoming Earnings Report
Methode Electronics is set to release its first quarter fiscal 2026 results on September 3, 2025.
The upcoming report is highly anticipated, as it will provide insights into the company's progress in addressing the operational challenges identified in previous quarters.
Historically, the company has faced difficulties in meeting earnings expectations, which has contributed to the stock's recent underperformance.
Analysts are cautiously optimistic, with consensus estimates suggesting a potential stabilization in revenue.
However, any significant deviation from these projections could have a notable impact on the stock.
A positive earnings surprise could reinvigorate investor interest, while further disappointments may exacerbate the stock's decline.
### Sector Performance
The electrical systems sector, to which Methode Electronics belongs, has been experiencing mixed performance.
While some companies have benefited from strong demand in AI and defense markets, others, including Methode Electronics, have struggled due to supply chain disruptions and industry-specific challenges.
Overall, the sector remains competitive, with companies that can effectively navigate these challenges poised for growth.
Investors in the sector are closely monitoring macroeconomic factors, such as interest rate changes, which could influence borrowing costs and investment decisions.
- Funds were net sellers of
$MEI during the previous reporting quarter.
- Funds with large holdings in
$MEI include:
- Point72 Asset Management LP, MV:
$1MM. Fund Rank: 96%
www.point72.com
- IEQ Capital LLC, MV:
$1MM. Fund Rank: 82%
- Last 10 days performance: 14%
- Last 30 days performance: 13%
- Last 90 days performance: -4%
Some of the latest news articles:
- Title: Methode Electronics to Release First Quarter Fiscal 2026 Results on Wednesday, September 3, 2025
Publication Date: 8/21/2025 8:05:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/methode-electronics-release-first-quarter-200500303.html?.tsrc=rss
- Title: Werner, XPO, JELD-WEN, Tutor Perini, and Methode Electronics Stocks Trade Up, What You Need To Know
Publication Date: 8/12/2025 4:16:05 PM, Source: yahoo
URL: https://finance.yahoo.com/news/werner-xpo-jeld-wen-tutor-161605957.html?.tsrc=rss
- Title: Methode Electronics Insiders Added US
$513.6k Of Stock To Their Holdings
Publication Date: 8/9/2025 2:15:40 PM, Source: yahoo
URL: https://finance.yahoo.com/news/methode-electronics-insiders-added-us-141540008.html?.tsrc=rss
- Title: Kulicke and Soffa (KLIC) Q3 Earnings and Revenues Surpass Estimates
Publication Date: 8/6/2025 9:40:03 PM, Source: yahoo
URL: https://finance.yahoo.com/news/kulicke-soffa-klic-q3-earnings-214003948.html?.tsrc=rss
Follow us on stocktwits.com for more earnings alerts. Not a financial advice. Not a trading signal."
