Seeking Alpha
Profile| Send Message|
( followers)  

Methode Electronics, Inc. (NYSE:MEI) engages in the design and manufacture of electro-mechanical devices in North America, Europe, and the Asia-Pacific. Its Automotive segment supplies electronic and electromechanical devices, and related products to automobile original equipment manufacturers directly or tiered suppliers.

It is scheduled to report its Q4 2012 results on June 28, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 279.50M
  • 52-week trading range: 6.94 - 11.77
  • Trailing P/E: 22.27
  • Forward P/E: 13.98
  • Price/Sales: 0.61
  • Price/Book: 1.12
  • PEG Ratio: 3.35
  • Total Debt: 39.50M
  • Annual dividend yield: 3.70%
  • Return on Equity: 4.65%
  • Return on Assets: 2.69%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last quarters. In the last quarter it reported $0.02 EPS, in-line with analyst estimates.

The consensus EPS is $0.07 based on 1 analyst estimate, down from $0.24 a year ago. Revenue estimates are $123.67M, up from $119.41M a year ago. The median target price by analysts for the stock is $10.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On January 29, 2012, the company was downgraded from Outperform to Neutral at Robert W. Baird.

Latest Developments

  • On June 21, 2012, Methode Electronics, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.07 per share to be paid on July 27, 2012, to common stockholders of record at the close of business on July 13, 2012.
  • On June 21, 2012, Methode Electronics, Inc. and AgileSwitch, LLC announced a marketing and technology partnership. As part of this agreement, AgileSwitch, LLC will provide edge IGBT gate drives which provide the highest performance for energy conversion inverters and systems.
  • On March 1, 2012, Methode Electronics, Inc. reaffirmed fiscal 2012 guidance and expects revenue to be in the range of $450-$465 million and earnings per share (EPS) in the range of $0.13-$0.21.
  • On February 2, 2012, Methode Electronics, Inc. and SBE, Inc. announced a marketing and technology partnership. As part of this agreement, SBE, Inc. will provide edge film capacitors with the highest performance for electric vehicle and energy conversion inverters and systems.

Competitors

Methode Electronics Inc. operates in Diversified Electronics industry. The company could be compared to Gentex Corp. (NASDAQ:GNTX), Lear Corp. (NYSE:LEA), Molex Inc. (NASDAQ:MOLX), and Visteon Corp. (NYSE:VC). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)MEI Chart

MEI data by YCharts

Competitors' Latest Development

  • On May 3, 2012, Lear Corporation reaffirmed fiscal 2012 guidance and expects sales to be in the range of $13.85 billion to $14.35 billion and core operating earnings to be in the range of $740 million to $790 million.
  • On May 2, 2012, Visteon Corporation updated sales and earnings guidance for fiscal 2012 to reflect discontinued operations associated with the Company's lighting business and to give full effect to the sale of Grace Lake Corporate Center in Van Buren Township, Mich.
  • On April 25, 2012, Molex Inc announced that the Board of Directors has approved an increase in the quarterly cash dividend to $0.22 per share, an increase of 10% from the previous cash dividend of $0.20 per share.
  • On April 25, 2012, Molex Inc announced that for fourth quarter of 2012, it expects revenue in a range of $870 to $900 million and earnings per share in a range of $0.36-$0.40 assuming constant foreign currency rates and commodity prices and an effective tax rate of 31%.
  • On April 19, 2012, Gentex Corporation announced that it expects net sales for the second quarter of 2012 is an increase of approximately 15% compared with the same quarter in 2011.
  • On April 11, 2012, Lear Corporation announced that it has signed an agreement to acquire Guilford Mills, a privately-held portfolio company of Cerberus Capital Management, L.P.
  • On March 16, 2012, Molex Inc announced that a regular quarterly cash dividend of $0.20 per share will be paid to holders of Common Stock Class A Common Stock and Class B Common Stock, payable on April 25, 2012 to stockholders of record on March 31, 2012.
  • On March 12, 2012, Visteon Corporation announced that it has agreed to sell its automotive lighting business to Varroc Group, a global provider of automotive parts, for $92 million in cash.
  • On February 27, 2012, Visteon Corporation reaffirmed fiscal 2012 guidance it provided at a January 11 analyst conference. The Company projects fiscal 2012 product sales ranging from $7.1 billion to $7.5 billion, adjusted EBITDA in the range of $650 million to $690 million.
  • On February 24, 2012, Molex, Inc and TE Connectivity Ltd.announced that a second source agreements under which TE Connectivity will have the right to manufacture, market and sell worldwide several Molex highspeed interconnect solutions including the z-Quad Small Form factor Pluggable Plus (zQSFP+) and the Small Form-Factor Pluggable Plus (zSFP+), among others.
  • On February 17, 2012, Lear Corporation announced that Jeffrey H. Vanneste has been appointed Senior Vice President and Chief Financial Officer (NASDAQ:CFO) effective March 15, 2012.
  • On January 31, 2012, Gentex Corporation announced that its estimate for net sales for the first quarter of 2012 is an increase of approximately 15%-20% compared with the same quarter in 2011.
  • On January 11, 2012, Lear Corporation announced that its Board of Directors has authorized a $300 million increase to its existing share repurchase program, bringing the total value of shares that may be repurchased to $700 million.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Methode Electronics Expected To Report June 28