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Market Overview

Methode Electronics Earnings Preview

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Methode Electronics (NYSE:MEI) announces its next round of earnings this Thursday, June 24. Here is Benzinga's look at Methode Electronics's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Methode Electronics management projections, analysts predict EPS of $0.7 on revenue of $280.05 million. In the same quarter last year, Methode Electronics reported EPS of $0.79 on revenue of $210.60 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 11.39% decline in the company's EPS figure. Revenue would be up 32.98% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.79 0.80 0.26 0.76
EPS Actual 0.83 1.03 0.41 0.79
Revenue Estimate 277.70 M 276.60 M 174.30 M 209.05 M
Revenue Actual 295.30 M 300.80 M 190.90 M 210.60 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 53.1%. Given that these returns are generally positive, long-term shareholders can 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