Bull Of The Day: Methode Electronics (MEI)

Methode Electronics (MEI - Snapshot Report) is the small technology company behind a big portfolio of components, products, and custom-engineered solutions that show up in aerospace, appliance, automotive, communications, industrial, and rail transport systems.

This $1.75 billion global manufacturer of electrical, radio remote control, electronic, wireless, and sensing-based technologies has even developed communication and radar subsystems for the Lockheed Martin (LMT - Analyst Report) F-35 Joint-Strike Fighter and numerous missile-guidance systems.

Methode's engineering and innovation expertise has developed over 60 years, allowing the company to now serve fifteen of the Fortune Global 100, including Boeing (BA - Analyst Report) and General Motors, and fifty-two of Global 500 companies.

From magnetic signature sensing of mechanical and electrical properties to biometric identification and the revolutionary solid-state touch sensitive switches used in today's appliances and automobiles, Methode's extensive toolbox of technical solutions help their customers differentiate their products.

Here's a snapshot from the company website communicating the growth frontier of touch controls in cars...

Another EPS Surprise

In their recent Q3 FY15 earnings report, Methode beat Street expectations by over 40% on the bottom line with $0.68 EPS and posted a 8.5% year-over-year increase on the top line, even with one less week in the quarter vs Q3 of FY14. This marked the 3rd consecutive EPS surprise, pushing the average beat over 20%.

In addition to strength from the Automotive segment, the company saw revenues for Power Products jump 45%, one of its best quarters ever.

Management raised EPS guidance from $2.25 to $2.55 for FY15 ending in April, implying a 10-cent bump to Q4 projections after the 20-cent Q3 beat. And with no corresponding guidance from the company, analysts raised EPS estimates for FY2016 starting in May to $2.75 from $2.51.

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Disclosure: I own MEI and AAPL shares for the Zacks FTM Portfolio.

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