Examining the Future: Methode Electronics's Earnings Outlook

Methode Electronics (NYSE:MEI) is gearing up to announce its quarterly earnings on Wednesday, 2025-12-03. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Methode Electronics will report an earnings per share (EPS) of $-0.28.

Investors in Methode Electronics are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.09, leading to a 12.16% increase in the share price the following trading session.

Here's a look at Methode Electronics's past performance and the resulting price change:

Stock Performance

Shares of Methode Electronics were trading at $7.74 as of December 01. Over the last 52-week period, shares are down 32.3%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Methode Electronics

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Methode Electronics.

The consensus rating for Methode Electronics is Neutral, based on 1 analyst ratings. With an average one-year price target of $8.5, there's a potential 9.82% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of RF Industries, Neonode and Data I/O, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for RF Industries, with an average 1-year price target of $9.25, suggesting a potential 19.51% upside.
• Analysts currently favor an Neutral trajectory for Neonode, with an average 1-year price target of $6.0, suggesting a potential 22.48% downside.
• Analysts currently favor an Buy trajectory for Data I/O, with an average 1-year price target of $5.22, suggesting a potential 32.56% downside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for RF Industries, Neonode and Data I/O, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Methode Electronics ranks at the top for Gross Profit and Return on Equity among its peers. However, it ranks at the bottom for Revenue Growth. Overall, Methode Electronics is positioned well compared to its peers in terms of financial performance.

About Methode Electronics

Methode Electronics Inc supplier of custom-engineered solutions with sales, engineering, and manufacturing locations in North America, Europe, the Middle East, and Asia. It designs, engineers, and produces mechatronic products for Original Equipment Manufacturers (OEMs) utilizing a broad range of technologies for user interface, light-emitting diode (LED) lighting systems, power distribution, and sensor applications. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment, which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles, including overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors.

Methode Electronics: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Methode Electronics's financials over 3 months reveals challenges. As of 31 July, 2025, the company experienced a decline of approximately -6.96% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Methode Electronics's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -4.28%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Methode Electronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.49%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Methode Electronics's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.79%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.51, Methode Electronics adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Methode Electronics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.