The manufacturer of components and subsystem devices' income rose to $48.2 million, or $1.25 a share, up from $10.1 million, or 27 cents a share in the same period one year ago.
Methode's net sales for the most recent quarter jumped 51.7% to $224.9 million versus $148.3 million for the 2013 fourth quarter.
Separately, TheStreet Ratings team rates METHODE ELECTRONICS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate METHODE ELECTRONICS INC (MEI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MEI's very impressive revenue growth greatly exceeded the industry average of 9.0%. Since the same quarter one year prior, revenues leaped by 54.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MEI's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MEI has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, METHODE ELECTRONICS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 322.22% and other important driving factors, this stock has surged by 129.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MEI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- METHODE ELECTRONICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, METHODE ELECTRONICS INC increased its bottom line by earning $1.08 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $1.08).
- You can view the full analysis from the report here: MEI Ratings Report