Shares of Methode Electronics experienced a sharp decline, reaching a 52-week low, as the company adjusted its outlook for the year. The latest quarter saw a drop in both profit and sales, causing concern among investors.
At 11:21 a.m. ET, the stock plummeted by 19% to $24.27.
The engineering company now expects sales for the year ending in April 2024 to range from $1.14 billion to $1.18 billion, marking a decrease from the previous forecast of $1.15 billion to $1.20 billion. Analysts surveyed by FactSet had anticipated sales of $1.16 billion.
Excluding one-time items, the projected earnings per share for the full year are estimated to be in the range of 88 cents to $1.08.
Methode Electronics is also grappling with lower-than-expected earnings per share and sales in the second quarter. Analysts expected earnings per share of 52 cents, but the adjusted forecast is at a modest 12 cents to 17 cents. Additionally, sales are predicted to decline to $285 million to $295 million, falling short of the estimated $307.1 million.
Chief Executive Donald Duda attributed the drop in profit during the first quarter to operational challenges and costs associated with program launches.
