Custom-engineered solutions manufacturer Methode Electronics (NYSE: MEI) will be reporting earnings this Wednesday after market hours. Here’s what to look for.

Methode Electronics beat analysts’ revenue expectations by 12.4% last quarter, reporting revenues of $257.1 million, down 7.3% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations.

Is Methode Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Methode Electronics’s revenue to decline 16.1% year on year to $217 million, a further deceleration from the 10.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Methode Electronics has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Methode Electronics’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 20.2%, beating analysts’ expectations by 11.6%, and Vertiv reported revenues up 35.1%, topping estimates by 12%. LSI traded up 22.6% following the results while Vertiv was also up 2%.

Read our full analysis of LSI’s results here and Vertiv’s results here.

There has been positive sentiment among investors in the electrical systems segment, with share prices up 5.8% on average over the last month. Methode Electronics is up 23.9% during the same time and is heading into earnings with an average analyst price target of $9.50 (compared to the current share price of $7.73).

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