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Market Overview

Earnings Preview: Methode Electronics


Methode Electronics (NYSE:MEI) announces its next round of earnings this Thursday, March 04. Here is Benzinga's everything-that-matters guide for this Thursday's Q3 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

Analysts expect Methode Electronics earnings of $0.79 per share. Revenue will likely be around $277.70 million, according to the consensus estimate. In the same quarter last year, Methode Electronics posted EPS of $1.05 on sales of $285.90 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.

The Wall Street estimate would represent a 24.76% decline in the company's earnings. Sales would be down 2.87% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 0.80 0.26 0.76 0.92
EPS Actual 1.03 0.41 0.79 1.05
Revenue Estimate 276.60 M 174.30 M 209.05 M 279.38 M
Revenue Actual 300.80 M 190.90 M 210.60 M 285.90 M

Stock Performance

Shares of Methode Electronics were trading at $40.07 as of March 02. Over the last 52-week period, shares are up 33.59%. Given that these returns are generally positive, long-term shareholders should be content 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.


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Posted-In: BZI-EPEarnings