The 10-second takeaway
For the quarter ended April 27 (Q4), Methode Electronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Methode Electronics chalked up revenue of $148.4 million. The three analysts polled by S&P Capital IQ foresaw revenue of $128.9 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $126.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The three earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.27 for Q4 were 80% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.8%, 60 basis points better than the prior-year quarter. Operating margin was 5.4%, 150 basis points better than the prior-year quarter. Net margin was 6.8%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $148.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $653.0 million. The average EPS estimate is $1.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 148 members out of 158 rating the stock outperform, and 10 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Methode Electronics a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Methode Electronics is buy, with an average price target of $14.50.
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