Why did MEI's Q3 2025 EPS fall sharply?

The EPS of MEI's Q3 2025 fell sharply due to several key factors: 1. **Revenue Decline**: Methode Electronics reported a decrease in revenue, with Q3 2025 revenue coming in at $239.9 million, below the anticipated $259.27 million. This decline, especially in the automotive sector, significantly impacted the company's profitability. 2. **Automotive Program Roll-offs**: The company's revenue was negatively affected by the roll-off of automotive programs, which led to a decline in sales. This is a significant indicator of the challenges faced by the company in maintaining its customer base and market share in a competitive environment. 3. **Tax Expense**: Methode Electronics faced a significant tax expense of $6.2 million, primarily due to a $6.5 million valuation allowance for U.S. deferred tax assets. This added to the net loss, making the EPS fall further. In summary, the fall in MEI's Q3 2025 EPS can be attributed to a combination of revenue decline, automotive program roll-offs, and tax expense. These factors, either directly or indirectly, contributed to the company's lower-than-expected earnings for the period.