Methode Electronics Shares Fall On Mixed Q1 Earnings Results & Dismal Outlook
Portfolio Pulse from Nabaparna Bhattacharya
Methode Electronics, Inc. (NYSE:MEI) reported a 2.6% YoY net sales growth in Q1 FY24, beating consensus. However, adjusted EPS of $0.06 missed the consensus of $0.23. The company faced operational inefficiencies in its North American Auto operations due to labor and vendor issues. The company's outlook for Q2 and FY24 is below estimates. MEI shares fell by 10% in premarket trading.
September 07, 2023 | 1:06 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Methode Electronics reported mixed Q1 FY24 results and a weak outlook, leading to a 10% drop in premarket trading.
Methode Electronics reported a YoY net sales growth in Q1 FY24, beating consensus. However, the company's adjusted EPS missed the consensus. Operational inefficiencies in its North American Auto operations due to labor and vendor issues have negatively impacted the company's performance. The company's outlook for Q2 and FY24 is also below estimates, which is likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100