Methode Electronics Beats Sales Expectations, But Stock Plummets 11%

Methode Electronics (NYSE:MEI) reported Q1 CY2025 revenue of $257.1 million, beating analyst estimates by 12.4%, but down 7.3% year-on-year. The company’s non-GAAP loss per share was -$0.77, significantly below expectations. Methode’s full-year revenue guidance of $950 million was 9.1% below analyst estimates. President and CEO Jon DeGaynor highlighted progress in the company’s transformation journey. Methode Electronics struggled with decreased demand from EV customers and faced challenges in the latest quarter. The stock price fell by 11.2% after the earnings report. Analysts expect Methode Electronics to return to profitability with a full-year EPS forecast of $0.67.

Revenue for Methode Electronics has been declining, with a 7.3% drop in Q1 CY2025, but beating Wall Street estimates by 12.4%. The company’s operating margin was negative 9.2%, down from negative 3.2% in the same quarter last year. Methode Electronics has shown poor performance over the last five years, with an 18.8% annual decline in EPS. Despite challenges faced in the latest quarter, analysts forecast a positive EPS of $0.67 for the full year. Methode Electronics continues to struggle with profitability due to rising costs and lower demand. The stock price dropped by 11.2% following the earnings report.

Read more at Barchart: Methode Electronics (NYSE:MEI) Beats Q1 Sales Targets But Stock Drops 11%