Methode (MEI) Q2 Earnings and Revenues Surpass Estimates

Core Viewpoint - Methode (MEI) reported quarterly earnings of $0.14 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.17 per share, and showing an improvement from earnings of $0.06 per share a year ago [1][3] Financial Performance - The earnings surprise for the quarter was 182.35%, compared to a previous expectation of a loss of $0.28 per share, where the actual loss was $0.31, resulting in a surprise of -10.71% [2] - Methode's revenues for the quarter ended October 2024 were $292.6 million, surpassing the Zacks Consensus Estimate by 10.47%, and showing an increase from $288 million in the same quarter last year [3] - Over the last four quarters, Methode has exceeded consensus revenue estimates two times [3] Stock Performance - Methode shares have declined approximately 48.9% since the beginning of the year, contrasting with the S&P 500's gain of 27.6% [5] - The current Zacks Rank for Methode is 4 (Sell), indicating expectations of underperformance in the near future [8] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $260.55 million, and for the current fiscal year, it is -$0.47 on revenues of $1.07 billion [9] - The trend of estimate revisions for Methode has been unfavorable leading up to the earnings release [8] Industry Context - The Electronics - Connectors industry, to which Methode belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [10]