Methode Electronics' stock dropped 17.0% in the pre‑market session following a sharp decline in after‑hours trading. The move came after the company released its fiscal first‑quarter results after the market closed on September 2, 2026.
Adjusted earnings showed a loss of $0.22 per share, slightly better than the $0.24 loss analysts had forecast. Revenue reached $265.4 million, up 10.4% year over year and well above the consensus estimate of $231.57 million. Net loss widened to $11.4 million from $10.3 million a year earlier, while free cash flow was negative $10.9 million. Adjusted EBITDA came in at $13.7 million, marginally below expectations.
For fiscal 2027, the company reaffirmed its revenue guidance of $1.025 billion to $1.075 billion, centering on a $1.05 billion midpoint. The guidance matched analyst forecasts but failed to deliver the upside revision the market had anticipated after a recent multi‑month rally in the stock.
Broader market indices were largely unchanged, with the S&P 500 flat, the Dow Jones up 0.2% and the Nasdaq down 0.3%. The sell‑off appears confined to Methode Electronics, with no evident macro or sector drivers.
Analysts had previously highlighted the stock as a successful pick in ProPicks AI, citing historic gains from companies such as Super Micro Computer and AppLovin, but those references did not influence the current price action.
