Methode Electronics's Earnings Outlook

Methode Electronics MEI announces its next round of earnings this Thursday, December 03. Here is Benzinga's everything-that-matters guide for this Thursday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Methode Electronics's EPS to be near $0.8 on sales of $276.60 million. Methode Electronics reported a profit of $0.64 per share when it published results during the same quarter last year. Sales in that period totaled $257.20 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 25.0%. Sales would be up 7.54% from the year-ago period. Methode Electronics's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Methode Electronics were trading at $35.46 as of December 01. Over the last 52-week period, shares are down 6.67%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Methode Electronics is scheduled to hold the call at 11:00:00 ET and can be accessed here.