Methode Electronics Reports Increased Loss in Q3

Methode Electronics faces challenges as Q3 losses rise and earnings miss forecasts. The company's financial struggles could impact its stock performance in the near term.

Date: 06-03-2025

AI Rating: 4

The recent report indicates that Methode Electronics (MEI) is experiencing financial difficulties. The company's losses have increased compared to the previous year. Specifically, the earnings totaled -$14.4 million, reflecting a significant drop in performance. This is worse than the loss of -$11.6 million reported in the same quarter last year.

Earnings Per Share (EPS): The EPS also saw a decline, with the current quarter reporting -$0.41 per share compared to -$0.33 per share in the previous year. The adjusted earnings further illustrate this decline, showing -$7.2 million or -$0.21 per share, again missing analyst expectations of a loss of -$0.08 per share.

Revenue Growth: Additionally, the company's revenue has fallen by 7.6%, from $259.5 million last year to $239.9 million this year. This drop in revenue not only reduces cash flow but also reflects underlying demand issues or increased competition.

The guidance for next quarter suggests a slight recovery, projecting revenue between $240 million and $255 million. However, given the current figures and missed expectations, it remains uncertain whether this guidance can be achieved.

Stocks: MEI