MEI - Why Methode Electronics Stock Fell Hard Today
2023-09-07 16:26:28 ET
Shares of Methode Electronics (NYSE: MEI) were down 22.4% as of 3 p.m. ET Thursday after the electronics manufacturing specialist announced disappointing quarterly earnings and lowered its full-year outlook.
For its fiscal first-quarter 2024 ended July 29, 2023, Methode's net sales grew 2.6% year over year to $289.7 million, translating to adjusted ( non-GAAP ) net income of $2 million, or $0.06 per share. Analysts, on average, were looking for significantly higher earnings of $0.23 per share, but on lower revenue of $281.3 million.
Methode's net sales would have declined 1.5% year over year had it not been for its recent acquisition of lighting solutions company Nordic Lights, which more than offset the negative impact of $10.4 million in lower material spot buy and premium freight cost recovery. Management also blamed the earnings shortfall on a combination of accelerated expenses related to program launches and "operational inefficiencies" in its North American Auto business caused by labor and vendor issues.
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Why Methode Electronics Stock Fell Hard Today