The chart below shows how MEI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MEI sees a +8.04% change in stock price 10 days leading up to the earnings, and a -5.27% change 10 days following the report. On the earnings day itself, the stock moves by -0.64%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Sales and Income: Sales for the quarter were $293 million, and our adjusted pretax income was $9 million.
Extra Week Revenue Boost: The quarter benefited from an extra week, contributing approximately $20 million worth of revenue.
Net Sales Increase: Our second quarter net sales were $292.6 million compared to $288 million in fiscal 2024, an increase of 2%.
Sequential Sales Increase: On a sequential basis, sales increased 13% from the fiscal 2025 first quarter.
EBITDA Increase in Q2: Second quarter adjusted EBITDA was $26.7 million, up $5.5 million from the same period last year.
Negative
Sales Performance Decline: Sales decreased to $292.6 million compared to $288 million in fiscal 2024, indicating a 2% increase but still reflecting a decline in overall performance.
Cash Flow Decline: The second quarter net cash from operating activities was a negative $48 million compared to a negative $0.6 million in fiscal 2024, showing a significant deterioration in cash flow management.
Net Debt Increase: The company experienced a notable increase in net debt, rising by $74.2 million to $243.6 million, indicating a growing financial burden.
Worsening Cash Flow Issues: The second quarter's free cash flow was negative $58.4 million, a decrease from negative $11.3 million in fiscal 2024, highlighting worsening cash flow issues.
Regulatory Scrutiny Alert: The company received a subpoena from the SEC, indicating potential regulatory scrutiny and compliance challenges.
Methode Electronics, Inc. (MEI) Q2 2025 Earnings Call Transcript
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