Methode Electronics MEI is set to report fourth-quarter fiscal 2019 results on Jun 20.
We note that, on average, the company has delivered a positive earnings surprise of 22.5% in the trailing four quarters. In the last reported quarter, Methode Electronics delivered positive earnings surprise of 36.7%.
Earnings increased 12.2% on a year-over-year basis to 83 cents per share, primarily driven by 8.3% growth in revenues, which totaled $246.9 million.
Methode Electronics is expected to suffer from lower passenger car demand and production in Europe and Asia in fourth-quarter fiscal 2019.
Europe’s updated emission testing standards are slowing down production of passenger cars, which is hurting Methode Electronics’ growth in the region.
Asia is negatively impacted by the ongoing U.S.-China trade tussle and a slowing China economy. Lower prices are also expected to negatively impact top-line growth in the to-be reported quarter.
Moreover, production rate cut by notable OEMs is expected to hurt growth in North America.
Methode Electronics, Inc. Price and EPS Surprise
Methode Electronics, Inc. price-eps-surprise | Methode Electronics, Inc. Quote
Nevertheless, strong demand for advanced sensor technologies (magnetoelastic sensors) is a key catalyst. Further, Methode Electronics’ Industrial segment is expected to benefit from Grakon’s robust performance in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $277.4 million, indicating growth of 11.4% from the figure reported in the year-ago quarter. The consensus mark for the bottom line is 71 cents, unchanged over the past 30 days.
What Our Model Indicates
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Methode Electronics has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of stocks you may want to consider, as our proven model shows that these have the right combination of elements to post an earnings beat.
OSI Systems OSIS has an Earnings ESP of +2.54% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
MSCI MSCI has an Earnings ESP of +10% and a Zacks Rank #2.
Alteryx AYX has an Earnings ESP of +13.66% and a Zacks Rank #2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MSCI Inc (MSCI) : Free Stock Analysis Report
OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
Methode Electronics, Inc. (MEI) : Free Stock Analysis Report
Alteryx, Inc. (AYX) : Free Stock Analysis Report
To read this article on Zacks.com click here.