Latest news with #MethodeElectronics
Yahoo
05-08-2025
- Automotive
- Yahoo
Methode Electronics to Present at the J.P. Morgan Auto Conference
CHICAGO, Ill., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, will present at the J.P. Morgan Auto Conference on Tuesday, August 12th at 12:40 p.m. EDT. A simultaneous webcast can be accessed on the company's website, by selecting the Investors page. The webcast will also be archived on the same Investors page. About Methode Electronics, Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliance. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface. For Methode Electronics, K. CherryVice President Investor Relationsrcherry@ in to access your portfolio
Yahoo
16-07-2025
- Automotive
- Yahoo
5 Revealing Analyst Questions From Methode Electronics's Q1 Earnings Call
Methode Electronics reported first quarter results that disappointed the market, as evidenced by a significant share price drop. Management attributed the underwhelming performance to unexpected inventory write-offs and continued challenges within its automotive programs. CEO Jon DeGaynor described the quarter as weighed down by 'one-time, or historic in nature' items, including a $15 million inventory adjustment largely tied to delayed or canceled automotive and EV programs. DeGaynor was candid about the impact of these issues, citing operational improvements that were 'largely masked' by these charges. Is now the time to buy MEI? Find out in our full research report (it's free). Methode Electronics (MEI) Q1 CY2025 Highlights: Revenue: $257.1 million vs analyst estimates of $228.8 million (7.3% year-on-year decline, 12.4% beat) Adjusted EPS: -$0.77 vs analyst estimates of $0.03 (significant miss) Adjusted EBITDA: -$7.1 million vs analyst estimates of $19.7 million (-2.8% margin, significant miss) EBITDA guidance for the upcoming financial year 2026 is $75 million at the midpoint, below analyst estimates of $95.47 million Operating Margin: -8.4%, down from -3.4% in the same quarter last year Market Capitalization: $228.1 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions Methode Electronics's Q1 Earnings Call Luke Junk (Baird) asked about the feasibility of doubling EBITDA despite a $100 million sales decline; CEO Jon DeGaynor pointed to eliminated one-time costs and improved operational execution as key levers. Luke Junk (Baird) inquired about the risk of further EV launch delays and how management is mitigating these uncertainties; DeGaynor noted reliance on third-party forecasts and ongoing cost reductions to address potential disruptions. Gary Prestopino (Barrington) pressed for details on the inventory charges and reasoning for not adjusting these out of non-GAAP results; DeGaynor explained these were operational in nature and thus included in adjusted EBITDA. John Franzreb (Sidoti) questioned the expected mix of auto versus industrial sales going forward; DeGaynor indicated a strategic move toward a more balanced 50/50 split, with growth anticipated in data center and industrial segments. Gary Prestopino (Barrington) also sought clarification on the recent dividend reduction and its relation to covenant compliance; DeGaynor confirmed the cut aligns with peer yields and provides greater financial flexibility. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will be watching (1) the pace and quality of new program launches, particularly in data centers and the industrial segment, (2) the company's ability to maintain cost discipline as it rightsizes operations and plant footprint, and (3) any signs of stabilization or renewed growth in EV demand. Outcomes from cost recovery efforts with automakers and progress on portfolio reviews will also be important markers of execution. Methode Electronics currently trades at $6.48, down from $10.28 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Our Favorite Stocks Right Now Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
13-07-2025
- Business
- Yahoo
Methode Electronics' (NYSE:MEI) Dividend Will Be Reduced To $0.07
Methode Electronics, Inc.'s (NYSE:MEI) dividend is being reduced from last year's payment covering the same period to $0.07 on the 1st of August. However, the dividend yield of 4.0% is still a decent boost to shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Even though Methode Electronics is not generating a profit, it is still paying a dividend. The company is also yet to generate cash flow, so the dividend sustainability is definitely questionable. Over the next year, EPS is forecast to expand by 120.3%. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio reaching 144% over the next year. View our latest analysis for Methode Electronics Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the dividend has gone from $0.36 total annually to $0.28. This works out to be a decline of approximately 2.5% per year over that time. A company that decreases its dividend over time generally isn't what we are looking for. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Methode Electronics' earnings per share has shrunk at 55% a year over the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. In summary, it's not great to see that the dividend is being cut, but it is probably understandable given that the current payment level was quite high. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Methode Electronics that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Methode Electronics Inc (MEI) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $257 million for Q4, a decrease of 7% year-over-year. Free Cash Flow: $26 million in Q4, the best quarter since Q4 of fiscal '23. Adjusted Loss from Operations: $22 million, with $15 million due to unplanned inventory adjustments. Adjusted EBITDA: Negative $7.1 million for Q4, down $12.4 million year-over-year. Net Cash from Operating Activities: $35.4 million in Q4, compared to $24.9 million in fiscal '24. Debt Reduction: Debt reduced by $10 million from Q3. Power Products and Data Center Sales: Record sales exceeding $80 million for the full year. EV Sales: 20% of consolidated total for the full year, up from 19% the previous year. Fiscal 2026 Sales Guidance: Expected to be $900 million to $1 billion. Fiscal 2026 EBITDA Guidance: Expected to be $70 million to $80 million, with a doubling of EBITDA margin from 4.1% to 7.9%. Warning! GuruFocus has detected 6 Warning Signs with MEI. Release Date: July 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Methode Electronics Inc (NYSE:MEI) achieved $26 million in free cash flow in the fourth quarter, marking the best quarter since Q4 of fiscal '23. The company set records for data center power product sales, finishing the year with over $80 million in sales, nearly double the previous year. Operational improvements led to a $12 million improvement in tooling recovery and a $22 million reduction in accounts receivable. Despite a projected $100 million decline in sales for fiscal '26, MEI expects to double its EBITDA due to operational improvements. The company successfully launched 22 new programs in fiscal '25 and expects to launch another 30 in fiscal '26, indicating strong future growth potential. MEI experienced a $22 million adjusted loss from operations in the fourth quarter, with $15 million attributed to unplanned inventory adjustments. The company faced significant challenges due to reduced, delayed, or canceled EV programs, particularly from Stellantis, impacting future demand projections. Historical warranty and quality issues contributed approximately $5 million to the quarterly loss. MEI's fiscal '26 sales are expected to be approximately $100 million lower than fiscal '25 due to soft market outlook and EV program delays. The company had to amend its credit agreement, reducing the facility capacity and revising covenant ratios, indicating financial constraints. Q: Jon, you mentioned that despite a $100 million sales decline, you expect EBITDA to rise in fiscal '26. Can you explain the key earnings levers given this sales decline? A: Jonathan DeGaynor, President and CEO, explained that the company has improved its launch processes, reducing concerns about incremental costs for new launches. The significant drop in EV demand has created a revenue gap, but several one-off expenses from fiscal '25, such as warranty reserves and restructuring costs, are either eliminated or improved, supporting the expectation of doubling EBITDA despite lower sales. Q: Regarding the 30 launches in fiscal '26, how many are related to EV platforms, and how do you mitigate risks of delays or volume changes? A: Jonathan DeGaynor stated that about 50% of the launches are related to EV platforms. The company uses third-party data to guide its projections and has taken steps to reduce costs and utilize its engineering and fixed assets for other markets, such as data centers, to mitigate risks associated with EV program delays or cancellations. Q: Can you clarify the impact of Stellantis on your revenue expectations and how it has changed? A: Jonathan DeGaynor noted that Stellantis' program volumes dropped significantly, leading to a $200 million swing from initial projections. The company is actively working with customers to address these changes and is leveraging its capabilities to support growth in other areas, such as data centers. Q: How does the reduction in dividend relate to your financial strategy and covenant changes? A: Jonathan DeGaynor explained that the dividend reduction aligns with peer yields and provides flexibility for working capital. It also considers covenant requirements, ensuring the company maintains financial stability while addressing market challenges. Q: With the automotive revenue decline, do you expect growth in the industrial side of the business? A: Jonathan DeGaynor confirmed that growth is expected in the industrial segment, particularly in data centers and lighting, which will help balance the business and reduce reliance on automotive revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Automotive
- Yahoo
Methode Electronics (NYSE:MEI) Beats Q1 Sales Targets But Stock Drops 11%
Custom-engineered solutions manufacturer Methode Electronics (NYSE:MEI) announced better-than-expected revenue in Q1 CY2025, but sales fell by 7.3% year on year to $257.1 million. On the other hand, the company's full-year revenue guidance of $950 million at the midpoint came in 9.1% below analysts' estimates. Its non-GAAP loss of $0.77 per share was significantly below analysts' consensus estimates. Is now the time to buy Methode Electronics? Find out in our full research report. Revenue: $257.1 million vs analyst estimates of $228.8 million (7.3% year-on-year decline, 12.4% beat) Adjusted EPS: -$0.77 vs analyst estimates of $0.03 (significant miss) Adjusted EBITDA: -$7.1 million vs analyst estimates of $19.7 million (-2.8% margin, significant miss) EBITDA guidance for the upcoming financial year 2026 is $75 million at the midpoint, below analyst estimates of $95.47 million Operating Margin: -9.2%, down from -3.2% in the same quarter last year Free Cash Flow Margin: 10.2%, up from 5.7% in the same quarter last year Market Capitalization: $370.8 million Management CommentsPresident and Chief Executive Officer Jon DeGaynor said, 'The Methode transformation journey made further progress in the quarter, as we focused on improving execution to drive long-term value. We have built a new management team and set records for the quarter and the year in data center power product sales, with the year finishing at over $80 million. The year also provided a series of challenges both exogenous and endogenous. We experienced a significant ramp down in expected demand from one of our largest EV customers and delays with other EV customers. In fact, we finished the year with a challenging exercise to write down inventory primarily related to materials for reduced, delayed or canceled programs. While the team made clear strides in improving operational execution, the results were masked by factors that were either outside our immediate control or residual in nature which led to a larger than expected net loss for the quarter.' Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs). A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Methode Electronics struggled to consistently increase demand as its $1.05 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Methode Electronics's recent performance shows its demand remained suppressed as its revenue has declined by 5.7% annually over the last two years. Methode Electronics isn't alone in its struggles as the Electrical Systems industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, Methode Electronics's revenue fell by 7.3% year on year to $257.1 million but beat Wall Street's estimates by 12.4%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Methode Electronics was profitable over the last five years but held back by its large cost base. Its average operating margin of 6% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Methode Electronics's operating margin decreased by 15.2 percentage points over the last five years. Methode Electronics's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q1, Methode Electronics generated an operating margin profit margin of negative 9.2%, down 6 percentage points year on year. Since Methode Electronics's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Methode Electronics, its EPS declined by 18.8% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand. Diving into the nuances of Methode Electronics's earnings can give us a better understanding of its performance. As we mentioned earlier, Methode Electronics's operating margin declined by 15.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Methode Electronics, its two-year annual EPS declines of 59.8% show it's continued to underperform. These results were bad no matter how you slice the data. In Q1, Methode Electronics reported EPS at negative $0.77, down from negative $0.23 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Methode Electronics's full-year EPS of negative $1.15 will flip to positive $0.67. We were impressed by how significantly Methode Electronics blew past analysts' revenue expectations this quarter. On the other hand, its EPS and EBITDA missed along with its full-year revenue and EBITDA guidance. Overall, this was a weaker quarter. The stock traded down 11.2% to $9.13 immediately after reporting. Methode Electronics's latest earnings report disappointed. One quarter doesn't define a company's quality, so let's explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
