Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAnders Bylund, The Motley FoolThu, June 25, 2026 at 10:15 PM GMT+2 2 min readShares of Methode Electronics (NYSE: MEI) rose as much as 40% on Thursday afternoon, boosted by a strong Q4 2026 earnings report. The engineering and manufacturing specialist crushed Wall Street's consensus estimates.Image source: Getty Images.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Contract safeguards saved the quarterMethode faced a difficult business environment in the fourth quarter, as several electric vehicle makers delayed their expected product launches or canceled them altogether. The Street consensus called for revenue growth of just 2% to $239.5 million, while the bottom line was supposed to swing from a $0.01 profit to a $0.09 loss per share.But some of Methode's key contracts were set up with minimum order volumes and other safeguards, and management was able to negotiate effective recoveries under these terms. In the end, automotive sales rose 28% and industrial revenues jumped 14%, adding up to total Q4 revenues of $298.1 million. Helped by the high-margin customer recoveries, earnings held steady at $0.01 per share.Methode's turnaround still has miles to goWith $19 million of recoveries in the bank, the recovery process is about halfway done. Methode's management expects to collect $25 million more over the next 3-4 years, chiefly in the form of higher product prices and tooling fees. The company had expanded its manufacturing capacity in recent years, expecting a boom in electric vehicle production, and was caught off-guard as that industry saw a global slowdown instead.After today's big jump, Methode's stock has nearly doubled in 52 weeks -- but it's also down 62% in five years. Sales are lumpy, profits are roughly breakeven, and the balance sheet holds $325 million of long-term debt against just $149 million in cash reserves.This is a turnaround story in progress, not a triumphant victory march to new highs.Should you buy stock in Methode Electronics right now?Before you buy stock in Methode Electronics, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Methode Electronics wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $387,428!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,221,398!*Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info