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Why is Methode Electronics, Inc. (MEI) Stock down?
Shares of Methode Electronics, Inc. (MEI) dropped by 9.27% from $24.39 to $22.13 in the trading on Thursday, December 7, 2023. The reason why MEI is down today is due to disappointing financial results for the second quarter FY24 and weak outlook for the full FY2024 & 2025.
- Net sales: Methode Electronics, Inc. (NYSE: MEI) reported a second-quarter FY24 net sales decline of 8.8% year-on-year, totaling $288 million. This figure missed the consensus estimate of $292.82 million. The company faced challenges primarily in its Automotive segment, where sales declined across all geographic regions, impacting its quarterly performance.
- Earnings per share: The adjusted earnings per share (EPS) for the quarter was $0.06, falling short of the consensus estimate of $0.12. The UAW strike had an impact on earnings, accounting for a $0.03 per share reduction.
- Outlook: For the full fiscal year 2024, the company reiterates its net sales guidance in the range of $1.14 billion to $1.18 billion, which is slightly below the estimated $1.16 billion. However, the adjusted EPS forecast has been revised downward from $0.88-$1.08 to $0.24-$0.50, compared to the previous estimate of $0.92. Looking ahead to fiscal year 2025, the company now expects net sales in the range of $1.15 billion to $1.25 billion, a reduction from the previous range of $1.25 billion to $1.35 billion. This adjustment is primarily due to expected customer delays with EV programs and program roll-offs. Additionally, the company has revised its income from operations as a percentage of net sales, lowering it to 6%-8% from the previous range of 11%-12%.
Methode Electronics, Inc. (MEI) stock fell 9.28% after the company released its fiscal 2023 fourth quarter and Full year financial results. Following, the net sales, income from operations and other income increased compared to the same quarter in 2022. However, when it comes to detail segment, there was a decrease in Medical and Automotive segment's net sales and income from operations.
https://finance.yahoo.com/news/methode-electronics-inc-reports-fiscal-110000334.html
MEI's stock fell 18.13% after reducing its FY23 EPS outlook to $2.10 - $2.14, down from the previously provided guidance of $2.50 - $2.60 and largely missing the Street view of $2.51.
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