Methode Electronics Inc. (NYSE:MEI) shares climbed 14.77% to $15.02 after the bell on Wednesday after the company reported fourth-quarter results where it posted revenue of $298.1 million, topping the analyst estimate of $236.53 million by 26.03%.
After the markets closed on Wednesday, Methode announced its fourth-quarter and full-year financial results for the period ended May 2.
After-Hours Gain Despite EPS Miss
The revenue beat wasn’t without a caveat. Adjusted earnings per share loss came in at $0.30, missing the consensus estimate of $0.19 by 57.89%.
Adjusted EBITDA swung to $26.9 million from a loss of $7.1 million a year ago.
What Does FY26 Data Say
For full-year, net sales came in at $1,019.2 million, down 2.8% year-over-year. However, Adjusted EBITDA surged 60.5% to $68.2 million.
Free cash flow turned positive at $15.6 million, reversing a $15.2 million outflow last year. Net debt narrowed to $185.4 million from $214 million, reflecting balance sheet strengthening.
President and CEO Jon DeGaynor said the company “improved profitability, generated positive free cash flow, strengthened our balance sheet, simplified our portfolio, and continued investing in our people and capabilities.”
Optimistic FY2027 Guidance
Management guided financial year 2027 net sales of $1.025–$1.075 billion, above the analyst consensus estimate of $940.79 million. Adjusted EBITDA outlook stood at $72–$82 million.
DeGaynor added the company is “increasingly well positioned to drive sustainable profitable growth, margin expansion, and cash generation over the long term,” citing data center power infrastructure and vehicle electrification as key growth drivers.
Trading Metrics, Technical Analysis
Methode has a market capitalization of $463.78 million. The stock has traded between a 52-week high of $15.55 and a 52-week low of $4.88.
The stock has a Relative Strength Index (RSI) of 59.69.
Over the past 12 months, MEI has gained 41.82%.
The small-cap stock of the Illinois-based custom-engineered solutions supplier is currently trading at about 80% of its 52-week range.
MEI’s long-term trend and strong positioning indicate potential for continued upside.
Price Action: According to Benzinga Pro data, MEI closed the regular session at $13.09, up 2.31%.
With a strong Momentum in the 95th percentile, Benzinga’s Edge Stock Rankings indicate that MEI has a positive price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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