$MEI Stock Update

June 25th MEI reported fiscal-fourth-quarter earnings, coming up short of analyst estimates for revenue and guiding for a revenue decline in fiscal 2016.

Methode reported fourth-quarter revenue of $227.3 million, up 1.1% year-over-year and slightly short of analyst expectations. For the full year, Methode reported revenue of $881.1 million, up 14% compared to the previous fiscal year.

Methode reported EPS of $0.68 during the fourth quarter, in line with analyst estimates but well below the EPS of $1.25 the company reported during the same period last year. Multiple factors drove the decline in EPS, including a lower income tax benefit, higher goodwill impairment and intangible asset charges, higher compensation expense, and pricing concessions in the Automotive segment. For the full year, EPS rose slightly, up about 2.4% to $2.57.

The real bad news was MEI’s guidance. Methode expects revenue between $830 million and $865 million for fiscal 2016, the first revenue decline since fiscal 2010. EPS is expected to be in the range of $2.07 and $2.22, down significantly year-over-year.

The Club purchased MEI for 30.12 in May and it is now down a staggering 43%… sorry guys. Things aren’t looking good in the near future either. As a result I would like to SELL MEI

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